The actual manufacturing overhead incurred at Hogans Corporation during April was $59,000, while the manufacturing overhead applied to jobs was $74,000. The company's Cost of Goods Sold was $289,000 prior to adjusting for any underapplied or overapplied overhead. Which of the following statements is true?

Question

Quizplus · Accepted Answer

The manufacturing overhead was overapplied by $15,000 because the applied overhead ($74,000) was more than the actual overhead ($59,000). Therefore, the Cost of Goods Sold should be decreased by $15,000, resulting in an adjusted Cost of Goods Sold of $274,000.

The Actual Manufacturing Overhead Incurred at Hogans Corporation During April