Flagler Company allocates overhead based on machine hours. It estimated overhead costs for the year to be $420,000. Estimated machine hours were 50,000. Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead.
(a)Calculate the predetermined factory overhead rate for the year.
(b)What is the amount of applied overhead for the year?
(c)What is the amount of under- or overapplied overhead for the year? Indicate whether it is over- or underapplied.

Question

Flagler Company allocates overhead based on machine hours. It estimated overhead costs for the year to be $420,000. Estimated machine hours were 50,000. Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead.​
(a)Calculate the predetermined factory overhead rate for the year.
(b)What is the amount of applied overhead for the year?
(c)What is the amount of under- or overapplied overhead for the year? Indicate whether it is over- or underapplied.

Quizplus · Accepted Answer

The Answer of Flagler Company allocates overhead based on machine hours. It estimated overhead costs for the year to be $420,000. Estimated machine hours were 50,000. Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead.​
(a)Calculate the predetermined factory overhead rate for the year.
(b)What is the amount of applied overhead for the year?
(c)What is the amount of under- or overapplied overhead for the year? Indicate whether it is over- or underapplied.

Flagler Company Allocates Overhead Based on Machine Hours