If the applied manufacturing overhead was $223,900, the actual manufacturing overhead cost for the year was:

A) $200,700
B) $260,600
C) $200,200
D) $187,200

Question

If the applied manufacturing overhead was $223,900, the actual manufacturing overhead cost for the year was:A) $200,700B) $260,600C) $200,200D) $187,200

Adyria Moore · Accepted Answer

Final Answer : D, Explanation :  Underapplied (overapplied)manufacturing overhead = Actual manufacturing overhead - Manufacturing overhead applied-$36,700 = Actual manufacturing overhead - $223,900Actual manufacturing overhead = $223,900 - $36,700 = $187,200Reference: CH03-Ref12Parker Corporation has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.At the beginning of the year, manufacturing overhead and direct labor-hours for the year were estimated at $50,000 and 20,000 hours, respectively.In June, Job #461 was completed.Materials costs on the job totaled $4,000 and labor costs totaled $1,500 at $5 per hour.At the end of the year it was determined that the company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual manufacturing overhead costs.

If the applied manufacturing overhead was $223,900, the actual manufacturing overhead cost for the year was:

A) $200,700
B) $260,600
C) $200,200
D) $187,200

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