Two jobs were worked on during the year: Job A-101 and Job A-102.The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000,respectively.The actual manufacturing overhead was $37,000.What is the amount of the under- or overapplied manufacturing overhead?

Question

Quizplus · Accepted Answer

The calculation for manufacturing overhead applied is:
$15 × (1,200 + 1,000) = $33,000
The actual manufacturing overhead was $37,000, so the difference between actual and applied manufacturing overhead is:
$37,000 - $33,000 = $4,000 underapplied. Therefore, the correct answer is C.

Two Jobs Were Worked on During the Year: Job A-101