PEL Limited has been using an overhead rate of Rs.5.60 per machine hour. During the year, overheads of Rs. 275,000 were incurred and 48,000 machine hours were worked. Therefore, overheads were: A. Under-applied by Rs.7,600 B. Over-applied by Rs. 6,200 C. Under-applied by Rs. 6,200 D. Over-applied by Rs. 7,600

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...
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Overhead were?

PEL Limited has been using an overhead rate of Rs.5.60 per
machine hour. During the year, overheads of Rs. 275,000 were
incurred and 48,000 machine hours were worked. Therefore,
overheads were:
A. Under-applied by Rs.7,600
B. Over-applied by Rs. 6,200
C. Under-applied by Rs. 6,200
D. Over-applied by Rs. 7,600
Transcribed Image Text:PEL Limited has been using an overhead rate of Rs.5.60 per machine hour. During the year, overheads of Rs. 275,000 were incurred and 48,000 machine hours were worked. Therefore, overheads were: A. Under-applied by Rs.7,600 B. Over-applied by Rs. 6,200 C. Under-applied by Rs. 6,200 D. Over-applied by Rs. 7,600
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