The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: The manufacturing overhead was:
A) $400 overapplied
B) $2,800 overapplied
C) $400 underapplied
D) $2,800 underapplied

Question

The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year:       The manufacturing overhead was:
A) $400 overapplied 
B) $2,800 overapplied 
C) $400 underapplied 
D) $2,800 underapplied

Quizplus · Accepted Answer

The manufacturing overhead account has a credit balance of $3,400 and the applied manufacturing overhead is $3,000. The difference between the two ($3,400 - $3,000 = $400) indicates that the manufacturing overhead was underapplied. Therefore, the answer is C, $400 underapplied.

The Following Partially Completed T-Accounts Summarize Transactions for Faaberg Corporation