Silver stream Pumps, Inc. manufactures pumps for agricultural irrigation systems. For the year, management estimated that the total manufacturing overhead would be $1,200,000. Management decided to use direct labor hours to apply manufacturing overhead and budgeted 50,000 direct labor hours. The balance in over- or under-applied overhead is deemed to be small. The following information was compiled before an adjustment had been made to close Manufacturing Overhead Control: Information Raw Materials Inventory Work in Process Inventory Amount ($) 250,000 210,000 Finished Goods Inventory 520,000 Actual Direct Labor Hours Used 55,000 Actual Overhead Incurred 1,150,000 For the year, manufacturing overhead was: A. $150,000 under-applied B. $150,000 over-applied C. $170,000 over-applied D. $170,000 under-applied

Silver stream Pumps, Inc. manufactures pumps for agricultural irrigation systems. For the year, management estimated that the total manufacturing overhead would be $1,200,000. Management decided to use direct labor hours to apply manufacturing overhead and budgeted 50,000 direct labor hours. The balance in over- or under-applied overhead is deemed to be small. The following information was compiled before an adjustment had been made to close Manufacturing Overhead Control: Information Raw Materials Inventory Work in Process Inventory Amount ($) 250,000 210,000 Finished Goods Inventory 520,000 Actual Direct Labor Hours Used 55,000 Actual Overhead Incurred 1,150,000 For the year, manufacturing overhead was: A. $150,000 under-applied B. $150,000 over-applied C. $170,000 over-applied D. $170,000 under-applied

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 15E: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing...

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Can you please give correct answer for this accounting question?