Question:
Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
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Estimated manufacturing overhead
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$139,080
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Estimated machine-hours
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3,800
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Actual manufacturing overhead
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$137,000
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Actual machine-hours
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3,780
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The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company"s predetermined overhead rate for the year.
The overhead for the year was:
A) $732 underapplied
B) $1,348 underapplied
C) $732 overapplied
D) $1,348 overapplied