Applies manufacturing overhead

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Carter Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 5,660. The company's predetermined overhead rate for the year was $24.70 per machine-hour.

The overhead for the year was?

a) $5,198 Overapplied

b) $3,952 Underapplied

c) $3,952 Overapplied

d) $5,198 Underapplied

Reference no: EM131289525

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