Determine missing amounts to complete the following table:
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Question & Answer: Determine missing amounts to complete the following table:…..
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Case | Actual MOH | Applied MOH | Over/Under applied | Amount |
A | $103,500 | $112,000 | Over applied | $8,500 |
B | $86,000 | $87,700 | Overapplied | $1,700 |
C | $292,800 | $271,800 | Underapplied | $21,000 |
D | $148,000 | $138,500 | Underapplied | $9,500 |
*If the actual overheads fall short of the amount applied,there is said to be an over application(absorption) of overheads, and conversely, if the actual expenses exceed the amount applied to production, it is a case of under absorption.