The Winston Company Estimates That the Factory Overhead for the Following

question 82

Multiple Choice

The Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year was 54,300. The actual factory overhead for the year was $1,375,000. Determine the over or under applied amount for the year.

• A) $17,500 overapplied
• B) $17,500 underapplied
• C) $118,250 overapplied
• D) $118,250 underapplied