RR Inc. uses machine-hours as the basis of overhead application. The following information is furnished by the company for the month of July 20X2. Total overheads cost for the month Estimated overheads cost Estimated machine hours Actual machine hours $450,000 $432,000 8000 9000 The overapplied/unapplied overheads for the month are: a. $36,000 Underapplied b. $36,000 Overapplied c. $18,000 Underapplied d. $18,000 Overapplied
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