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Beta Company uses a predetermined overhead rate based on machine hours to allocate manufacturing ove

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Beta Company uses a predetermined overhead rate based on machine hours to allocate manufacturing ove

Beta Company uses a predetermined overhead rate based on machine hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $600,000 of manufacturing overhead during the year and that 250,000 machine hours would be used. During the year, the company actually incurred manufacturing overhead costs of $582,000 and 240,000 machine hours were used.

By how much was manufacturing overhead overallocated or underallocated for the year?
A) $6,000 overallocated
B) $18,000 underallocated
C) $18,000 overallocated
D) $6,000 undererallocated

Textbook

Managerial Accounting

Edition: 4^th

Author: Braun

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Covet S.

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3 years ago

thanks!

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sui g.

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3 years ago

thnx

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Anonymous

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9 months ago

Help! The answer is missing an explanation...

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