The overhead applied based on predetermined overhead allocation may result in over or under application of the overhead. If the overhead applied is more than the actual overhead cost, then it shall be called over applied overhead. If the overhead applied is less than the actual overhead cost, then it shall be called under applied overhead. To calculate: Total Under or over-applied fixed manufacturing overhead.

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Chapter 9, Problem 9.6GBP

To determine

Concept introduction:

The overhead applied based on predetermined overhead allocation may result in over or under application of the overhead. If the overhead applied is more than the actual overhead cost, then it shall be called over applied overhead. If the overhead applied is less than the actual overhead cost, then it shall be called under applied overhead.

To calculate:

Total Under or over-applied fixed manufacturing overhead.

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