King Manufacturing estimated manufacturing overhead costs to be $248,000 for the year, incurred manufacturing overhead costs of $251,000, and applied overhead to jobs in the amount of $253,000.How much is the amount of overapplied or underapplied overhead?

Question

Quizplus · Accepted Answer

The amount of overapplied overhead is calculated by subtracting the actual overhead costs from the applied overhead costs. In this case, $253,000 (applied) - $251,000 (actual) = $2,000 overapplied.

King Manufacturing Estimated Manufacturing Overhead Costs to Be $248,000 for the Year