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Overhead application: Working backward The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional...

Overhead application: Working backward
The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review:
Division A Division B
Actual machine hours 22,500 ?
Estimated machine hours 20,000 ?
Overhead application rate $4.50 $5.00
Actual overhead $110,000 ?
Estimated overhead ? $90,000
Applied overhead ? $86,000
Over- (under-) applied overhead ? $6,500
FIND THE UNKNOWNS FOR EACH OF THE DIVISIONS.

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Dear Student, Please... View the full answer

8412180.xlsx

SOLUTION:
Division A:
Estimated Overhead = Estimated Machine Hours * Overhead Application Rate
Estimated Overhead = 20,000 * $4.50
Estimated Overhead $90,000.00 Applied Overhead = Actual Machine...

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