Answer:
The correct option here is B)
Explanation:
The current year forecast for Thomlin company is -
Overhead = $15,000,000
Machine hours = 300,000 hours.
From this given information , we can calculate the rate per hour
Rate per hour = overhead / machine hour
= $15,000,000 / 300,000
= $50
Now by multiplying this rate per hour by the actual machine hours -
$50 x 330,000
= $16,500,000 ( applied overhead )
so therefore applied overhead - actual overhead
= $16,500,000 - $16,000,000
= $ 500,000
So these overheads are over applied by $500,000
