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EastWind [94]
4 years ago
14

Tom’s Tool & Die uses a predetermined factory overhead rate based on machine-hours. For August, Tom’s budgeted overhead was

$234,000 based on a budgeted volume of 39,000 machine-hours. Actual overhead amounted to $230,000 with actual machine-hours totaling 38,500What was over- or underapplied manufacturing overhead in August?
Business
1 answer:
makvit [3.9K]4 years ago
8 0

Answer:

Overapplied overhead is $1,000.

Explanation:

predetermined factory overhead rate=Budgeted overhead/Budgeted volume

=(234,000/39.000)=$6/machine hour

Hence applied overhead= predetermined factory overhead rate*Actual volume

=(6*38.500)=$231.000

Hence since applied overhead is greater than actual overhead;

overapplied overhead=(231,000-230.000)=$1,000.

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4 years ago
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8 0
4 years ago
Read 2 more answers
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azamat

Answer:

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Answer:

The answer is below

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