Reyes Corporation applies overhead using a normal costing approach based upon machine-hours. Budgeted factory overhead was $266,400, budgeted machine-hours were 18,500. Actual factory overhead was $287,920, actual machine-hours were 19,050.
- How much is the over- or underapplied overhead?
A) $21,520 underapplied.
B) $13,600 underapplied.
C) $7,920 overapplied.
D) $0.

Question

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The Answer of Reyes Corporation applies overhead using a normal costing approach based upon machine-hours. Budgeted factory overhead was $266,400, budgeted machine-hours were 18,500. Actual factory overhead was $287,920, actual machine-hours were 19,050.
- How much is the over- or underapplied overhead?
A) $21,520 underapplied.
B) $13,600 underapplied.
C) $7,920 overapplied.
D) $0.

Reyes Corporation Applies Overhead Using a Normal Costing Approach Based