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Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

Answer :

Answer:

$50,000 overapplied

Explanation:

The computation of the overhead is shown below:

The predetermined overhead rate is

= $15,000,000 ÷ 3,000,0000 machine hours

= $50

Now the applied overhead is

= $50 × 330,000 hours

= $16,500,000

Now the overapplied overhead is

= $16,500,000 - $16,000,000

= $50,000 overapplied

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