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Acer Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
Estimated manufacturing overhead.....$224,550Estimated machine-hours................. 4,500Actual manufacturing overhead..........$224,000Actual machine-hours..........................4,440
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
The overhead for the year was:a. $2,994 underapplied b. $2,444 overapplied c. $2,444 underapplied d. $2,994 overapplied
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