TracyWood Company, a highly automated manufacturer, compiled the following data for the current period:
Assuming that TracyWood Company uses machine hours as a cost driver, determine the amount of overapplied or underapplied overhead for the current period?

Question

TracyWood Company, a highly automated manufacturer, compiled the following data for the current period:
 Assuming that TracyWood Company uses machine hours as a cost driver, determine the amount of overapplied or underapplied overhead for the current period?

Quizplus · Accepted Answer

Actual MOH $500,000 - (Applied MOH ($600,000 budgeted MOH/100,000 budgeted MHs) x 80,000 actual MHs) = $20,000 underapplied MOH

TracyWood Company, a Highly Automated Manufacturer, Compiled the Following Data