Answer:
a. the total factory overhead amount applied is $ 1,842,800
b. Under-applied Overheads is $ 26,200
Step-by-step explanation:
Applied Overheads
Are the Overheads costs accumulated in product cost for the year.
Applied Overheads = Predetermined Overhead Rate × Actual Activity
where Predetermined Overhead Rate = Budgeted Overheads / Budgeted Activity.
Predetermined Overhead Rate = $1,159,400/34,100 machine hours
= $34 per machine hour
Applied Overheads = $34 × 54,200 machine hours
= $ 1,842,800
Over- or Underapplied
Is the difference between Actual factory overhead and Applied factory Overheads
Actual factory overhead = $1,869,000
Applied factory Overheads = $ 1,842,800
Actual factory overhead ($1,869,000) >Applied factory Overheads ($ 1,842,800), thus we have an under-applied situation.
Under-applied Overheads = $1,869,000 - $ 1,842,800
= $ 26,200