The Prestige Company, which utilizes job-order costing, uses a predetermined overhead rate based on machine hours to apply both variable and fixed manufacturing overhead to jobs. Estimates for the month of April are as follows: The balance in the manufacturing overhead control account at the end of April will indicate the overhead was: a. Underapplied by $1,400
B) Overapplied by $1,400
C) Overapplied by $2,000
D) Overapplied by $2,000

Question

The Prestige Company, which utilizes job-order costing, uses a predetermined overhead rate based on machine hours to apply both variable and fixed manufacturing overhead to jobs. Estimates for the month of April are as follows:  The balance in the manufacturing overhead control account at the end of April will indicate the overhead was: a. Underapplied by $1,400
B) Overapplied by $1,400
C) Overapplied by $2,000
D) Overapplied by $2,000

Quizplus · Accepted Answer

The Answer of The Prestige Company, which utilizes job-order costing, uses a predetermined overhead rate based on machine hours to apply both variable and fixed manufacturing overhead to jobs. Estimates for the month of April are as follows:  The balance in the manufacturing overhead control account at the end of April will indicate the overhead was: a. Underapplied by $1,400
B) Overapplied by $1,400
C) Overapplied by $2,000
D) Overapplied by $2,000

The Prestige Company, Which Utilizes Job-Order Costing, Uses a Predetermined