The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The subsequent divisional information is presented for
your review:
Division A Division B
Actual machine hours 22,500 ?
Estimated machine hours 20,000 ?
Overhead application rate $4.50 $5.00
Actual overhead $110,000 ?
Estimated overhead ? $90,000
Applied overhead ? $86,000
Over- (under-) applied overhead ? $6,500
FIND THE UNKNOWNS FOR EACH OF THE DIVISIONS.