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hamijcf
Jun 30, 2009, 04:07 AM
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
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
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
Jul 1, 2009, 04:50 AM
Thanks sir your the best
I'm 100% satisfya with your answer