How much had either over or under applied overhead

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Reference no: EM132542635

Point 1: A manufacturing company uses a NORMAL COSTING SYSTEM (where the overhead costs are allocated to the WIP Account using a budgeted rate).

Point 2: They had budgeted annual overheads of $1011312 and budgeted annual machine hours (MH) of 15870 which they use as their main COST DRIVER.

Point 3: During the year, the company had an actual activity level of 15291 MH and the actual annual overhead was $1208486.

Question 1: Calculate by how much they had either over or under applied overhead.

Reference no: EM132542635

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