Cavy Company estimates that the factory overhead for the following year will be $927,200. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 24,400 hours. The machine hours for the month of April for all of the jobs were 5,210. If the actual factory overhead for April totaled $202,534, determine the over- or underapplied amount for the month. Enter the amount as a positive number.

Cavy Company estimates that the factory overhead for the following year will be $927,200. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 24,400 hours. The machine hours for the month of April for all of the jobs were 5,210. If the actual factory overhead for April totaled $202,534, determine the over- or underapplied amount for the month. Enter the amount as a positive number.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...

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