Reyes Corporation applies overhead using a normal costing approach based upon machine-hours. Budgeted factory overhead was $232,750, budgeted machine-hours were 17,500. Actual factory overhead was $227,830, actual machine-hours were 16,150.
- How much is the over- or underapplied overhead?
A) $13,035 overapplied.
B) $13,035 underapplied.
C) $4,920 overapplied.
D) $4,920 underapplied.

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 $232,750, budgeted machine-hours were 17,500. Actual factory overhead was $227,830, actual machine-hours were 16,150.
- How much is the over- or underapplied overhead?
A) $13,035 overapplied.
B) $13,035 underapplied.
C) $4,920 overapplied.
D) $4,920 underapplied.

Reyes Corporation Applies Overhead Using a Normal Costing Approach Based