Reyes Corporation Applies Overhead Using a Normal Costing Approach Based

question 46

Multiple Choice

Reyes Corporation applies overhead using a normal costing approach based upon machine-hours.Budgeted factory overhead was $232,750,budgeted machine-hours were 17,500.Actual factory overhead was $227,830,actual machine-hours were 16,150.How much is the over- or underapplied overhead?

• A) $13,035 overapplied.
• B) $13,035 underapplied.
• C) $4,920 overapplied.
• D) $4,920 underapplieD.
• $227,830 - [($232,750/17,500)× 16,150] = 13,035 underapplied

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