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.
Required:
a Calculate the overhead application rate for the year.
b What is the amount of applied overhead for the year?
c What is the amount of under or over applied overhead for the year? Indicate whether it is over or under applied.

Question

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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.
Required:
a Calculate the overhead application rate for the year.
b What is the amount of applied overhead for the year?
c What is the amount of under or over applied overhead for the year? Indicate whether it is over or under applied.

Flagler Company Allocates Overhead Based on Machine Hours