McDonnell Industries estimated manufacturing overhead for the year at $290,000.Manufacturing overhead for the year was underapplied by $12,000.The company applied $235,000 to work in process.The amount of actual overhead would have been:
A) $247,000.
B) $278,000.
C) $223,000.
D) none of these.

Question

Quizplus · Accepted Answer

Overapplied (underapplied)overhead = Applied overhead - Actual overhead costs
$(12,000)= $235,000 - Actual overhead costs
Actual overhead costs = $235,000 + $12,000 = $247,000

McDonnell Industries Estimated Manufacturing Overhead for the Year at $290,000