1. 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 22,500 ? 
Estimated machine hours 20,000 ? 
Overhead application rate $4.50 $5.00 
Actual overhead $110,000 ? 
Estimated overhead ? $90,000 
Applied overhead ? $86,000 
Over- (under-) applied overhead ? $6,500 
FIND THE UNKNOWNS FOR EACH OF THE DIVISIONS.

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