Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
-The overhead for the year was:

Question

Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. 
-The overhead for the year was:

Quizplus · Accepted Answer

Since the total applied overhead was $38,480 and the actual overhead incurred was $36,960, there was an overapplication of overhead by $1,520 ($38,480 - $36,960 = $1,520).

Acitelli Corporation, Which Applies Manufacturing Overhead on the Basis of Machine-Hours