Question

McKinley Industries estimated manufacturing overhead for the year at $289,000. Manufacturing overhead for the year was underapplied by $15,500. The company applied $234,000 to work in process. The amount of actual overhead would have been: Multiple Choice $234,000. $218,500. $249,500. None of the above answers are correct

Answer 1

Answer:

$249,500.

Explanation:

The companny applied 234,000 overhead

it was underapplied by 15,500

This means the actual overhead cost were higher than the amount applied by the company. Actual overhread is the sum of both concepts.

234,000 + 15,500 = 249,500

the estimated overhead for the year was used to determinatethe rate, but is has no relevance to check for applied or underapplied, so we must ignore that data.