Flagler Company Allocates Overhead Based on Machine Hours

question 45

Essay

Flagler Company allocates overhead based on machine hours. It estimated overhead costs for the year to be $420,000. Estimated machine hours were 50,000. Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead.​
(a)Calculate the predetermined factory overhead rate for the year.
(b)What is the amount of applied overhead for the year?
(c)What is the amount of under- or overapplied overhead for the year? Indicate whether it is over- or underapplied.

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Definitions:

Combined Gas Law

A gas law that combines Charles's law, Boyle's law, and Gay-Lussac's law to describe the relationship between the pressure, volume, and temperature of a fixed amount of gas.

Temperature

A physical quantity that expresses hot and cold, representing the average kinetic energy of particles in a matter.

Atm

A unit of pressure defined as being equal to the atmospheric pressure at sea level, approximately 101.325 kPa or 760 mmHg.

Temperature

A measure of the average kinetic energy of the particles in a system, indicating how hot or cold the system is.