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

A) $33,056 Underapplied
B) $1,066 Underapplied
C) $33,056 Overapplied
D) $1,066 Overapplied

Question

The total manufacturing overhead is underapplied or overapplied by how much?A) $33,056 UnderappliedB) $1,066 UnderappliedC) $33,056 OverappliedD) $1,066 Overapplied

gavin bennett · Accepted Answer

Final Answer : C, Explanation :  The total manufacturing overhead applied is $266,056 ($175,000 + $56,056 + $35,000). However, the actual total manufacturing overhead incurred is $299,112. Therefore, the manufacturing overhead is overapplied by $33,056 ($299,112 - $266,056).   Reference: APP10A-Ref23(Appendix 9A)Vaden Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below:

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

A) $33,056 Underapplied
B) $1,066 Underapplied
C) $33,056 Overapplied
D) $1,066 Overapplied

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