jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000. What is the amount of the under- or overapplied manufacturing overhead? A $3,000 overapplied. B $4,000 underapplied. C $7,000 overapplied. D $1,000 underapplied.
jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000. What is the amount of the under- or overapplied manufacturing overhead? A $3,000 overapplied. B $4,000 underapplied. C $7,000 overapplied. D $1,000 underapplied.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter16: Job Order Costing
Section: Chapter Questions
Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
Midwest Corporation has provided the following data concerning manufacturing overhead for 2020:
Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000.
What is the amount of the under- or overapplied manufacturing overhead?
| Estimated manufacturing overhead for the year | $ | 30,000 |
| Estimated direct labor hours for the year | 2,000 |
What is the amount of the under- or overapplied manufacturing overhead?
| A |
$3,000 overapplied.
|
|
| B |
$4,000 underapplied.
|
|
| C |
$7,000 overapplied.
|
|
| D |
$1,000 underapplied.
|
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