Jefferson Inc. has the following information for the month of September. The company applies OH cos standard machine hours as the allocation base Actual Results Actual variable OH costs 6520 24 2,320 Actual fixed OH costs 24 4,200 Actual machine hours 1,180 MHs Actual output 1,100 units Budget (for 1,000 units) Variable OH 2$ 2,000 Fixed OH 24 4,000 Budged machine hours 1,000 MHs 2 The total manufacturing overhead is underapplied or overapplied by how much? A. Overapplied by B. Underapplied by 2$ $ 200 7172 6520 120 C. Underapplied by 2$ 320 D. Overapplied by E. None of the above. 80

FINANCIAL ACCOUNTING
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jefferson Inc. has the following information for the month of September. The company applies OH cos
standard machine hours as the allocation base
Actual Results
Actual variable OH costs
6520
$
2,320
Actual fixed OH costs
$
4,200
Actual machine hours
1,180 MHs
Actual output
1,100 units
Budget (for 1,000 units)
Variable OH
2$
2,000
Fixed OH
$
4,000
Budged machine hours
1,000 MHs
2 The total manufacturing overhead is underapplied or overapplied by how much?
A. Overapplied by
B. Underapplied by
С.
А.
2$
200
7172
6520
2$
120
C. Underapplied by
D. Overapplied by
E. None of the above.
$ 320
80
Transcribed Image Text:Jefferson Inc. has the following information for the month of September. The company applies OH cos standard machine hours as the allocation base Actual Results Actual variable OH costs 6520 $ 2,320 Actual fixed OH costs $ 4,200 Actual machine hours 1,180 MHs Actual output 1,100 units Budget (for 1,000 units) Variable OH 2$ 2,000 Fixed OH $ 4,000 Budged machine hours 1,000 MHs 2 The total manufacturing overhead is underapplied or overapplied by how much? A. Overapplied by B. Underapplied by С. А. 2$ 200 7172 6520 2$ 120 C. Underapplied by D. Overapplied by E. None of the above. $ 320 80
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