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-   -   Under or Over applied overhead (https://www.askmehelpdesk.com/showthread.php?t=370474)

  • Jun 30, 2009, 04:07 AM
    hamijcf
    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
  • Jun 30, 2009, 06:46 AM
    codyman144

    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.
  • Jul 1, 2009, 04:14 AM
    rehmanvohra

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

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