If platinum used the capacity based predetermined rate to

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Reference no: EM13579898

Level of Activity

June July August

Machine hours 46,500 62,000 51,150

Total factory overhead costs $ 214,700 $ 236,400

The factory overhead costs above consist of indirect materials, rent and maintenacne. The company has analyzed theses costs at the 46,500 machine hours level of activity as follows:

Indirect material (variable) $51,150

Rent (fixed) $123,000

Maintenance (mixed) $ 40,550

Total factory overhead costs $ 214,700

Platinum (above) is considering using a predetermined overhead rate based on capacity

capacity of the factory 64,000 Machine hours

Masnufacturing OH cost at the capacity $ 256,000

If Platinum used the capacity based predetermined rate to apply manufacturing overhead cost, calculate the over or
under-applied overhead cost for the month of July:

Reference no: EM13579898

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