Overhead application: Working backward The Towson Manufacturing Corporation

Overhead application: Working backward

The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for
your review:

Division A

Division B

Actual machine hours

22500

?

Estimated machine hours

20000

?

Overhead application rate

$4.50

$5.00

Actual overhead

$110000

?

Estimated overhead

?

$90000

Applied overhead

?

$86000

Over- (under-) applied overhead

?

$6500

Find the unknowns for each of the divisions?