The total manufacturing overhead is underapplied or overapplied by how much?

A) $32,123 Underapplied
B) $27,454 Overapplied
C) $27,454 Underapplied
D) $32,123 Overapplied

Question

The total manufacturing overhead is underapplied or overapplied by how much?A) $32,123 UnderappliedB) $27,454 OverappliedC) $27,454 UnderappliedD) $32,123 Overapplied

Jacquie Kissamis · Accepted Answer

Final Answer : A, Explanation :    Reference: APP10A-Ref19(Appendix 9A)The Chuba Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs).During December, the company actually used 7,200 direct labor-hours and made 1,900 units of finished product.The standard cost card for one unit of product includes the following data concerning manufacturing overhead:Variable overhead: 4 DLHs @ $5.25 per DLHFixed overhead: 4 DLHs @ $2.00 per DLHFor December, the company incurred $16,550 in fixed manufacturing overhead costs and recorded an $800 unfavorable volume variance.

The total manufacturing overhead is underapplied or overapplied by how much?

A) $32,123 Underapplied
B) $27,454 Overapplied
C) $27,454 Underapplied
D) $32,123 Overapplied

Definitions

Learning Objectives

Learning Objectives

Related questions