What was aracelis underapplied or overapplied overhead


The following information relates to Araceli Manufacturing Company:

  1. total estimated maunufacturing overhead cost at beginning of year $864,000
  2. predetermined overhead rate (based on machine hours) $7.20 per hour
  3. total manufacturing cost incurred during the year $885,000
  4. total machine hours incurred during the year 118,000 hour
  5. What was Araceli's underapplied or overapplied overhead for last year?

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Accounting Basics: What was aracelis underapplied or overapplied overhead
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