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    hamijcf's Avatar
    hamijcf Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jun 30, 2009, 04:07 AM
    Under or Over applied overhead
    Dear sir please solve my this Multiple choice Question

    If a company has been using an overhead rate of Rs. 5.60 per machine hour.
    During the year, overheads of Rs. 275,000 were incurred and 48,000 machine
    Hours worked. Therefore, overheads were:

    A. Under-applied by Rs.7,600
    B. Over-applied by Rs. 6,200
    C. Under-applied by Rs. 6,200
    D. Over-applied by Rs. 7,600
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
    Senior Member
    		  
    #2

    Jun 30, 2009, 06:46 AM

    Why don't you tell me what you think the answer is and show your claculations and I will let you know if you are right or not.

    This is not a place to have your homework done for you.
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #3

    Jul 1, 2009, 04:14 AM

    Overheads applied 48000 x 5.60 - 268,800
    Actual overheads incurred 275,000
    Under applied overheads 6,200

    Please remember:
    Over applied means that overheads have been charged to production more than actual
    Under applied means that overheads have been charged to production are less than actual
    hamijcf's Avatar
    hamijcf Posts: 2, Reputation: 1
    New Member
    		  
    #4

    Jul 1, 2009, 04:50 AM
    Thanks sir your the best
    I'm 100% satisfya with your answer
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