Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
The overhead for the year was:
A) $2,792 underapplied
B) $3,842 overapplied
C) $2,792 overapplied
D) $3,842 underapplied

Question

Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.  The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
The overhead for the year was:
A) $2,792 underapplied 
B) $3,842 overapplied 
C) $2,792 overapplied 
D) $3,842 underapplied

Quizplus · Accepted Answer

The Answer of Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.  The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
The overhead for the year was:
A) $2,792 underapplied 
B) $3,842 overapplied 
C) $2,792 overapplied 
D) $3,842 underapplied

Acheson Corporation, Which Applies Manufacturing Overhead on the Basis of Machine-Hours