Tiffany charges manufacturing overhead to products by using a predetermined application rate,computed on the basis of labor hours.The following data pertain to the current year:
Which of the following choices is the correct status of manufacturing overhead at year-end?
A)Overapplied by $10,000.
B)Underapplied by $10,000.
C)Overapplied by $35,000.
D)Underapplied by $35,000.
E)Overapplied by $45,000.

Question

Tiffany charges manufacturing overhead to products by using a predetermined application rate,computed on the basis of labor hours.The following data pertain to the current year: 
Which of the following choices is the correct status of manufacturing overhead at year-end?
A)Overapplied by $10,000. 
B)Underapplied by $10,000. 
C)Overapplied by $35,000. 
D)Underapplied by $35,000. 
E)Overapplied by $45,000.

Quizplus · Accepted Answer

The Answer of Tiffany charges manufacturing overhead to products by using a predetermined application rate,computed on the basis of labor hours.The following data pertain to the current year: 
Which of the following choices is the correct status of manufacturing overhead at year-end?
A)Overapplied by $10,000. 
B)Underapplied by $10,000. 
C)Overapplied by $35,000. 
D)Underapplied by $35,000. 
E)Overapplied by $45,000.

Tiffany Charges Manufacturing Overhead to Products by Using a Predetermined