If the actual manufacturing overhead cost for the year totaled $145,000, then overhead was:
A)overapplied by $25,000
B)overapplied by $10,000
C)underapplied by $25,000
D)underapplied by $10,000

Question

Quizplus · Accepted Answer

Since the actual manufacturing overhead cost for the year is greater than the overhead applied, it means that overhead was underapplied. To find out the underapplied amount, we need to subtract the applied overhead from the actual overhead cost: 
$145,000 actual overhead - $120,000 applied overhead = $25,000 underapplied overhead.

If the Actual Manufacturing Overhead Cost for the Year Totaled