Answer:
Over-applied by $3,842
Explanation:
If<em>, Applied Overheads > Actual Overheads, overheads have been overapplied.</em>
<em>and</em>
<em>Since, Applied Overheads < Actual Overheads, overheads have been under- applied.</em>
Applied Overheads = Predetermined rate x Actual Activity
where,
Predetermined rate = Budgeted Overheads ÷ Budgeted Activity
therefore,
Predetermined rate = $ 157,050 ÷ 4,500
= $34.90
Applied Overheads = $34.90 x 4,580 = $159,842
<em>Since, Applied Overheads > Actual Overheads, overheads have been overapplied.</em>
Over-applied overheads = $159,842 - $ 156,000 = $3,842
