Question
Use the following to answer the question 18,19, and 20. Action Corporation, which applies manufacturing overhead on the basis of machine hours, has provided the
Use the following to answer the question 18,19, and 20. Action Corporation, which applies manufacturing overhead on the basis of machine hours, has provided the following data for its most recent year of operations.
Estimated Manufacturing Overhead$139,080
Estimated machine hours.3,800
Actual Manufacturing Overhead..$137,000
Actual machine hours3,780
The estimates of the manufacturing overhead and of machine-hours were at the beginning of the year for the purpose of comparing the companys predetermined overhead rate for the year. The predetermined overhead rate is closed to:
A.$36.60
B.$36.41
C.$36.24
D.36.05
The appplied manufacturing overhead for the year is closer to:
A. $136,269
B.$138,348
C.$136,987
D.137,630
The overhead for the year:
A.$732 underapplied B.$1,348 under-applied C.$732 underapplied D. $1,348 underapplied
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