Predetermined overhead rate based on machine-hours

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Uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company estimated that it would incur $510,000 in manufacturing overhead during the year and that it would work 100,000 machine-hours. The company actually worked 105,000 machine-hours and incurred $540,000 in manufacturing overhead costs. By how much was manufacturing overhead underapplied or overapplied for the year? A. $4,500 overapplied b. $4,500 underapplied c. $30,000 overapplied d. $30,000 underapplied 30. Darrow Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.

Reference no: EM13152321

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