Hendrix manufacturing applies overhead using a normal costing approach based on machine-hours. The budgeted factory overhead was $312,500, and the budgeted machine-hours were 22,000. The actual factory overhead was $335,200, and the actual machine-hours were 22,500. How much is the over- or under applied overhead?

Hendrix manufacturing applies overhead using a normal costing approach based on machine-hours. The budgeted factory overhead was $312,500, and the budgeted machine-hours were 22,000. The actual factory overhead was $335,200, and the actual machine-hours were 22,500. How much is the over- or under applied overhead?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 4TP: If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has...

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