Astros Co. uses machine hours as its overhead cost allocation driver.
Estimated manufacturing overhead $690,000
Estimated machine hours 46,000
Actual machine hours worked 50,000
Actual manufacturing overhead costs incurred:
Indirect materials $170,000
Indirect labor 230,000
Utilities 120,000
Insurance 100,000
Rent 80,000
The amount of overapplied or underapplied overhead is:
A) $65,200 underapplied.
B) $60,000 overapplied.
C) $40,000 underapplied.
D) $50,000 overapplied.
E) $10,000 underapplied.