acc206 manufacturing corporation applies overhead on the basis of machine hours the 492185
Overhead application: Working backward
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The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review:
|
Division A |
Division B |
|
|
Actual machine hours |
22,500 |
? |
|
Estimated machine hours |
20,000 |
? |
|
Overhead application rate |
$4.50 |
|
|
Actual overhead |
$110,000 |
$4.50 |
|
Estimated overhead |
? |
? |
|
Applied overhead |
? |
$86,000 |
|
Over- (under-) applied overhead |
? |
$6,500 |
FIND THE UNKNOWNS FOR EACH OF THE DIVISIONS.
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