If Estimated Production Overhead in the Painting Department Is $120,000

question 75

Multiple Choice

If estimated production overhead in the painting department is $120,000 and actual overhead is $116,000 and estimated machine hours in the painting department are 30,000 hours and actual machine hours are 28,000 hours, the under or over applied overhead is:

• A) $12,000 over applied
• B) $4,000 under applied
• C) $4,000 over applied
• D) $8,000 under applied

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