Homework SourseAt the end of the year overhead was 42000000 The actual over
At the end of the year, overhead was $42,000,000. The actual overhead as $40,300,000. Closing over/underapplied overhead info Cost is Goods Sold would cause net income
At the end of the year, overhead was $42,000,000. The actual overhead as $40,300,000. Closing over/underapplied overhead info Cost is Goods Sold would cause net income
Solution
Overhead Applied = $42,000,000
Actual Overhead = $40,300,000
Over-applied Overhead = Applied Overhead - Actual Overhead
Over-applied Overhead = $42,000,000 - $40,300,000
Over-applied Overhead = $1,700,000
Closing over-applied overhead into Cost of Goods Sold would cause net income to increase by $1,700,000.
