Tiger, Inc. had actual manufacturing overhead costs of $1,210,000 and a predetermined overhead rate of $4.00 per machine hour. Tiger, Inc. worked 290,000 machine hours during the period. Tiger’s manufacturing overhead is
Darshita Changed status to publish August 29, 2020
Answer:
Overhead Applied
= Predetermined overhead x hours
= $4.00 per hour × 290,000 hours
= $1,160,000
Underapplied Overhead
= Actual – Applied
=$1,210,000 – $1,160,000
= $50,000
Darshita Changed status to publish August 29, 2020
