Makkah Equipment Co. sells machines and has the following information for the year: Actual Estimated Overhead cost OMR 2,400,000 OMR 3,000,000 Direct labor hours 120,000 300,000 Machine hours 300,000 150,000 Overhead is applied on the basis of machine hours. The amount of over or under-applied overhead is: Select one: O a. 300N00 Overapplied O b. None of the answers are correct c. 300,000 Underapplied d. 260,000 Underapplied e. 150,000 Underapplied

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Makkah Equipment Co. sells machines and has the following information for the year.
Actual
Estimated
Overhead cost
OMR 2,400,000
OMR 3,000,000
Direct labor hours
120,000
300,000
Machine hours
300,000
150,000
Overhead is applied on the basis of machine hours.
The amount of over or under-applied overhead is:
Select one:
O a. 300N00 Overapplied
b. None of the answers are correct
O c. 300,000 Underapplied
d. 260,000 Underapplied
e. 150,000 Underapplied
Transcribed Image Text:Makkah Equipment Co. sells machines and has the following information for the year. Actual Estimated Overhead cost OMR 2,400,000 OMR 3,000,000 Direct labor hours 120,000 300,000 Machine hours 300,000 150,000 Overhead is applied on the basis of machine hours. The amount of over or under-applied overhead is: Select one: O a. 300N00 Overapplied b. None of the answers are correct O c. 300,000 Underapplied d. 260,000 Underapplied e. 150,000 Underapplied
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