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alisha [4.7K]
4 years ago
15

In a company where manufacturing overhead is applied based on machine hours, the predetermined allocation rate is $3 per machine

hour. Actual machine hours were 3,000 and actual manufacturing overhead was $8,000. Is overhead underallocated or overallocated and by how much?
Mathematics
1 answer:
Veronika [31]4 years ago
3 0

Answer:

The overhead is over allocated by $1000.

Step-by-step explanation:

The manufacturing overhead is applied based on machine hours, the predetermined allocation rate is $3 per machine hour.

Actual machine hours were 3,000 making the cost as = 3000\times3=9000dollars

But the actual manufacturing overhead was $8,000.

So, the overhead is over allocated by = 9000-8000=1000 dollars

Therefore, the answer is over allocated by $1000.

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