Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations.
Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below.

-The manufacturing overhead was:
A) $23,000 Overapplied
B) $23,000 Underapplied
C) $19,000 Overapplied
D) $19,000 Underapplied

Question

Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations.
  Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below.
  
-The manufacturing overhead was:
A) $23,000 Overapplied 
B) $23,000 Underapplied 
C) $19,000 Overapplied 
D) $19,000 Underapplied

Quizplus · Accepted Answer

11ea7761_18f5_8d80_81a5_39c115587aa4_TB2580_00 The overhead is $23,000 underapplied because the actual manufacturing overhead cost incurred of $242,000 exceeds the manufacturing overhead applied of $219,000 by $23,000.

Hardigree Corporation Uses a Job-Order Costing System