Question

During the year, Bright Corporation applied factory overhead costs of $330,000 to production. At the end of the year, total overapplied factory overhead is $13,000. What was the amount of actual factory overhead cost incurred during the year

Answer 1

$317,000 = actual overhead

Step-by-step explanation:

Giving the following information:

Applied overhead= $330,000

Overapplied overhead= $13,000

To calculate the actual overhead, we need to use the following formula:

Under/over applied overhead= real overhead - allocated overhead

-13,000 = real overhead - 330,000

$317,000 = real overhead