Answer:
Undeapplied overhead= $200
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 480,000 / 200,000
Predetermined manufacturing overhead rate= $2.4 per DLH
<u>Now, we can allocate overhead:</u>
<u></u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2.4*17,000
Allocated MOH= $40,800
<u>Finally, the over/under allocation:</u>
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 41,000 - 40,800
Undeapplied overhead= $200
