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Crochet Company allocates overhead based on machine hours. Estimated overhead costs for the year total $390,000 and the company estimates that it will use 50,000 machine hours during the year. Crochet works 48,000 machine hours during the year and incurs $380,000 of actual overhead?
a. what is the overhead application rate for the year?
b. what is the amount of applied overhead for the year?
c. what is the amount of under or overapplied overhead for the year? label over or under.
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