The following accounts are from last year's books at Sharp Manufacturing:
Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs.What is the manufacturing overapplied or underapplied for the year?
A) $6,000 underapplied
B) $6,000 overapplied
C) $26,000 underapplied
D) $26,000 overapplied

Question

The following accounts are from last year's books at Sharp Manufacturing:
     Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs.What is the manufacturing overapplied or underapplied for the year?
A) $6,000 underapplied 
B) $6,000 overapplied 
C) $26,000 underapplied 
D) $26,000 overapplied

Quizplus · Accepted Answer

The manufacturing overhead is overapplied by $6,000 because the manufacturing overhead applied of $210,000 exceeds the manufacturing overhead incurred by $6,000.

The Following Accounts Are from Last Year's Books at Sharp