During the year, Cambridge Corporation applied factory overhead costs of $205,000 to production. At the end of the year, total overapplied factory overhead is $17,000. What was the amount of actual factory overhead cost incurred during the year?

Question

Quizplus · Accepted Answer

To find the actual factory overhead cost incurred during the year, we need to subtract the overapplied factory overhead from the applied factory overhead:

Actual factory overhead cost = Applied factory overhead - Overapplied factory overhead
Actual factory overhead cost = $205,000 - $17,000
Actual factory overhead cost = $188,000

Therefore, the correct answer is D) $188,000.

During the Year, Cambridge Corporation Applied Factory Overhead Costs of $205,000