The Thomlin Company forecasts that total overhead for the current year will be $11,757,000 with 179,000 total machine hours. Year to date, the actual overhead is $7,810,000 and the actual machine hours are 84,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. O a. $2,266,000 overapplied Ob. $2,945,800 underapplied Oc. $2,945,800 overapplied Od. $2,266,000 underapplied

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Chapter4: Job Order Costing
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The Thomlin Company forecasts that total overhead for the current year will be $11,757,000
with 179,000 total machine hours. Year to date, the actual overhead is $7,810,000 and the
actual machine hours are 84,000 hours. If the Thomlin Company uses a predetermined
overhead rate based on machine hours for applying overhead, as of this point in time (year to
date), the overhead is
Round the factory overhead rate to the nearest dollar before multiplying by the number of
hours.
a. $2,266,000 overapplied
b. $2,945,800 underapplied
c. $2,945,800 overapplied
d. $2,266,000 underapplied
Transcribed Image Text:The Thomlin Company forecasts that total overhead for the current year will be $11,757,000 with 179,000 total machine hours. Year to date, the actual overhead is $7,810,000 and the actual machine hours are 84,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a. $2,266,000 overapplied b. $2,945,800 underapplied c. $2,945,800 overapplied d. $2,266,000 underapplied
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