Caber Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour. The overhead for the year was:
A)$1,010 underapplied
B)$590 overapplied
C)$590 underapplied
D)$1,010 overapplied

Question

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The Answer of Caber Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour. The overhead for the year was:
A)$1,010 underapplied
B)$590 overapplied
C)$590 underapplied
D)$1,010 overapplied

Caber Corporation Applies Manufacturing Overhead on the Basis of Machine-Hours