Overhead application: Working backward
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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