Scottso Corporation Applies Overhead Using an Actual Costing Approach

question 81

Multiple Choice

Scottso Corporation applies overhead using an actual costing approach.Budgeted factory overhead was $266,400,budgeted machine-hours were 18,500.Actual factory overhead was $287,920,actual machine-hours were 19,050.How much is the Over- or underapplied overhead?

• A)$21,520 underapplied.
• B)$13,600 underapplied.
• C)$7,920 overapplied.
• D)$0.

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Definitions:

Bid

An offer made by an individual or entity to buy something.

Prn

An abbreviation for "pro re nata," a Latin phrase meaning "as needed"; often used in prescriptions to indicate that medication should be taken as required.

Tincture

A solution where a solute is dissolved into alcohol, used primarily in medicine or herbalism.

Bid

An offer made by an individual or company to buy a good or service, or to perform a job at a specified price.