If estimated production overhead in the printing department is $120,000 and actual overhead is $116,000 and estimated machine hours in the printing department are 30,000 hours and actual machine hours are 32,000 hours, the under or over applied overhead is:

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Quizplus · Accepted Answer

Underapplied overhead = Actual overhead - Estimated overhead= $116,000 - $120,000= $4,000

If Estimated Production Overhead in the Printing Department Is $120,000