Elwood Company applies overhead based on machine hours. At the beginning of the year, Elwood estimates overhead to be $760,000, machine hours to be 200,000, and direct labor hours to be 40,000. During February, Elwood has 3,750 direct labor hours and 16,000 machine hours. If the actual overhead for February is $58,300, what is the overhead variance, and is it overapplied or underapplied?

Overhead variance is $ 2,500 Overapplied

Explanation:

Computation of applied overhead rate based on machine hours

Estimated Overhead                                                                     $ 760,000

Estimated machine hours                                                       200,000 hours

Overhead Rate per machine hour = $ 760,000 . 200,000 hours = $ 3,80

Actual Machine hours for February                                        16.000

Applied overhead based on machine hours $ 3.80 * 16,000 = $ 60,800

Actual overhead for February                                                      $  58,300

Overhead variance - Over applied                                                $ 2,500

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.

answer; im thinking the correct answer is (7years);