Reade Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The total manufacturing overhead is underapplied or overapplied by how much?
A)$61,347 Underapplied
B)$32,395 Underapplied
C)$61,347 Overapplied
D)$32,395 Overapplied

Question

Reade Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below:  The total manufacturing overhead is underapplied or overapplied by how much?
A)$61,347 Underapplied 
B)$32,395 Underapplied 
C)$61,347 Overapplied 
D)$32,395 Overapplied

Quizplus · Accepted Answer

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Reade Incorporated Makes a Single Product--An Electrical Motor Used in Many