Cavy Company estimates that the factory overhead for the following year will be $927,200. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 24,400 hours. The machine hours for the month of April for all of the jobs were 5,210. If the actual factory overhead for April totaled $202,534, determine the over- or underapplied amount for the month. Enter the amount as a positive number.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cavy Company estimates that the factory overhead for the following year will be $927,200. The company has decided that the basis for applying factory
overhead should be machine hours, which is estimated to be 24,400 hours. The machine hours for the month of April for all of the jobs were 5,210. If
the actual factory overhead for April totaled $202,534, determine the over- or underapplied amount for the month. Enter the amount as a positive
number.
Transcribed Image Text:Cavy Company estimates that the factory overhead for the following year will be $927,200. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 24,400 hours. The machine hours for the month of April for all of the jobs were 5,210. If the actual factory overhead for April totaled $202,534, determine the over- or underapplied amount for the month. Enter the amount as a positive number.
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