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Erickson company applies unit-related manufacturing

Question: Erickson Company applies unit-related manufacturing overhead on the basis of machine hours. The following unit-related overhead data were accumulated by the accounting department:

Estimated Actual

Machine Hours 450,000 600,000

Overhead costs $720,000 $950,000

What is the amount of over- or under applied overhead?

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Accounting Basics: Erickson company applies unit-related manufacturing

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