What is the over and under absorbed overhead

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Reference no: EM13880689

The Alphonse Company allocates overhead costs by machine hours. At the beginning of the year the company expects fixed overhead costs to be $60,000 and variable overhead costs to be $80,000. The expected machine hours are 6,000 and the expected direct labor hours are 80,000. The actual fixed overhead costs are $70,000 and the actual variable overhead costs are $85,000. The actual machine hours during the year are 6,500 and the actual direct labor hours are 90,000.

Required:

a. How much overhead is allocated?

b. What is the over/under absorbed overhead?

Reference no: EM13880689

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