Manufacturing overhead was estimated to be $312,000 for the year along with estimated 20,800 direct labor hours. Actual manufacturing overhead was $335,000, and actual labor hours were 23,300. Which of the following would be correct about the applied manufacturing overhead for the year? Multiple Choice Overhead is overapplied by $14,500. Overhead is overapplied by $23,000. Overhead is underapplied by $23,000. Overhead is underapplied by $14,500.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Manufacturing
Which of the following would be correct about the applied manufacturing overhead for the year?
-
Overhead is overapplied by $14,500.
-
Overhead is overapplied by $23,000.
-
Overhead is underapplied by $23,000.
-
Overhead is underapplied by $14,500.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
