The applied factory overhead is $6,939 and the over-or underapplied factory overhead amount for October is $461.
<h3> Applied and under applied factory overhead </h3>
1. Applied factory overhead:
Predetermine overhead rate=Fixed overhead/Machine hours
Predetermine overhead rate=16,920/36,000
Predetermine overhead rate=0.47
Applied overhead=Machine hours×Rate
Variable=2700×2.10 per hour= $5,670
Fixed=2700×0.47 per hour=$1,269
Total overhead applied=$6,939
($5,670+$1,269)
2. Under applied overhead
Total overhead applied $6,939
Less Total factory overhead $7,400
Under applied overhead -$461
($6,939-$7,400)
Therefore the applied factory overhead is $6,939 and the over-or underapplied factory overhead amount for October is $461.
Learn more about Applied and under applied factory overhead here:brainly.com/question/24170451
#SPJ1
