If overhead was underapplied by $2,500 during May, the actual overhead cost for the month must have been:
A)$16,700
B)$21,700
C)$18,500
D)$23,500

Question

Quizplus · Accepted Answer

If overhead was underapplied by $2,500, it means the actual overhead cost was $2,500 more than the applied overhead. Assuming the applied overhead was $19,200 (since $21,700 - $2,500 = $19,200), the actual overhead cost must have been $21,700.

If Overhead Was Underapplied by $2,500 During May, the Actual