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ACC 206 Week 3 Chapter 4 Exercise 7 Overhead application: Working backward

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Chapter 4 Exercise 7Overhead 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            Division
A        B
Actual machine hours 
22,500 ? 
Estimated machine hours 
20,000 ? 
Overhead application rate 
$4.50  $5.00 
Actual overhead 
$110,000  ? 
Estimated overhead 
?  $90,000 
Applied overhead 
Over- (under-) applied
?  $86,000 
?         $6,500 
overhead 
Find the unknowns for each of the divisions. 

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