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. Compute the 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?

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. Compute the 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?

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. Compute the 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?

Flagler Company Allocates Overhead Based on Machine Hours