Contia Inc. forecasts that total overhead for the current year will be $12,600,000, and total machine hours will be 300,000 hours. However, the actual overhead is $3,250,000, and the actual machine hours are 98,500 hours. If the company uses a predetermined overhead rate based on machine hours for applying overhead, the overhead will be:
a. overapplied by $887,000.
b. overapplied by $9,350,000.
c. underapplied by $887,000.
d. underapplied by $9,350,000.
Answers: 3
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Contia Inc. forecasts that total overhead for the current year will be $12,600,000, and total machin...
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