St.Johns Corporation uses a job-order costing system and has provided the following partially completed summary T-accounts for the just completed period: Manufacturing overhead for the period was:
A)$7,000 Underapplied
B)$73,000 Underapplied
C)$73,000 Overapplied
D)$7,000 Overapplied

Question

St.Johns Corporation uses a job-order costing system and has provided the following partially completed summary T-accounts for the just completed period:   Manufacturing overhead for the period was:
A)$7,000 Underapplied 
B)$73,000 Underapplied 
C)$73,000 Overapplied 
D)$7,000 Overapplied

Quizplus · Accepted Answer

The total debits to the manufacturing overhead T-account, which represents actual overhead costs incurred, are $500,000. The total credits to the account, which represents overhead costs applied to production, are $573,000. This results in an overapplied overhead balance of $73,000 ($573,000 - $500,000 = $73,000). 11ea7998_5eff_7048_911b_07b858b4d55b_TB2627_00_TB2627_00 Alternatively, 11ea7998_5eff_7049_911b_bb6407b3a26f_TB2627_00_TB2627_00 A credit balance in Manufacturing Overhead means that manufacturing overhead is overapplied by the amount of the balance.

StJohns Corporation Uses a Job-Order Costing System and Has Provided