Flagler company allocates overhead based on machine hours. They estimated overhead costs for the year to be $420,000. Estimated machine hours were 50,000. Actual hours and costs for the year were 46,000 machine hours & 380,000 of overhead.
(a) calculate the overhead application rate for the year
(b)what is the amount of applied overhead for the year?
(c) what is the amount of under or overapplied overhead for the year? Indicate whether it is over-or underapplied?