What the manufacturing overhead is for karleton ltd

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Problem 1: At the beginning of the period, Karleton Ltd. estimated its manufacturing overhead at $800,000. It determined that the best cost allocation based would be machine hours and it estimated it would use 50,000 machine hours. During the period the company actually worked 52,000 machine hours and incurred manufacturing overhead costs of $795,000. The manufacturing overhead is:

a) $5,000 overapplied.
b) $5,000 underapplied.
c) $32,000 overapplied.
d) $37,000 overapplied.

Reference no: EM132660120

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