Raisin Company's overhead cost was overapplied by $1,500 in the current year. The estimated overhead was $170,000, and the applied overhead was $166,000. Compute the actual overhead.
A) $164,500
B) $169,500
C) $168,500
D) $171,500

Question

Quizplus · Accepted Answer

The actual overhead is the estimated overhead minus the overapplied overhead. The overapplied overhead is $1,500, and the estimated overhead is $170,000. Therefore, the actual overhead is $170,000 - $1,500 = $168,500.

Raisin Company's Overhead Cost Was Overapplied by $1,500 in the Current