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

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Definitions:

Monarchs of Spain

Refers to the reigning kings and queens who have ruled Spain throughout its history.

Iberian Peninsula

A European peninsula located in the southwest corner of Europe, occupied by Spain and Portugal.

Portuguese

Refers to something of, from, or related to Portugal, including its culture, people, or language.

Western Atlantic Trade

A historical trading network across the Atlantic Ocean, primarily involving European countries and their American and African colonies, facilitating the exchange of goods, slaves, and resources from the 16th to the 19th centuries.