Reyes Corporation applies overhead using an actual costing approach. Budgeted factory overhead was $271,296, budgeted machine-hours were 18,840. Actual factory overhead was $289,620, actual machine-hours were 19,390. How much overhead would be applied to production

$279216

Explanation:

Budgeted rate = = = 14.4

Budgeted factory overhead = $271296

Budgeted Machine hours = 18840

Actual overhead cost = $289620

Allocated overhead cost = actual hours * budgeted rate

                                         = 19390 * 14.4 = $279216

from the calculations it is noted that the allocated overhead cost is lower than the actual overhead cost incurred by the corporation hence the overhead cost was underapplied

actual overhead cost - allocated overhead cost

Incomplete question.

Options;

a. A decrease in the price level and an increase in real output.

b. An increase in both the price level and real output.

c. An increase in the price level and a decrease in real output.

d. A decrease in both the price level and real output.

c. An increase in the price level and a decrease in real output.

Explanation:

Remember, aggregate supply often refers to the total output of goods and services in an economy available for sale While aggregate demand refers to the total value of the money spent on the goods and services produced in an economy.

Note also, what this means is that as a result of the severe oil-cutoff, the supply of oil would reduce greatly, and with lower supply in the short-run; we would expect the price level to increase.

However, as the price level increases, in the short-run, there would be an immediate decrease in the real output of oil among producers.