The towson manufacturing corporation applies overhead on

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The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following 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.

Reference no: EM13453801

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