Beta Company Uses a Predetermined Overhead Rate Based on Machine

question 36

Multiple Choice

Beta Company uses a predetermined overhead rate based on machine hours to allocate manufacturing overhead to jobs.The company estimated that it would incur $600,000 of manufacturing overhead during the year and that 250,000 machine hours would be used.During the year,the company actually incurred manufacturing overhead costs of $582,000 and 240,000 machine hours were used.
By how much was manufacturing overhead overallocated or underallocated for the year?

• A)$6,000 overallocated
• B)$6,000 undererallocated
• C)$18,000 underallocated
• D)$18,000 overallocated

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