Reyes Corporation applies overhead using an actual costing approach. Budgeted factory overhead was $271,296, budgeted machine-hours were 18,840. Actual factory overhead was $289,620, actual machine-hours were 19,390. How much overhead would be applied to production

$279216

Explanation:

Budgeted rate = = = 14.4

Budgeted factory overhead = $271296

Budgeted Machine hours = 18840

Actual overhead cost = $289620

Allocated overhead cost = actual hours * budgeted rate

                                         = 19390 * 14.4 = $279216

from the calculations it is noted that the allocated overhead cost is lower than the actual overhead cost incurred by the corporation hence the overhead cost was underapplied

actual overhead cost - allocated overhead cost