Tiffany charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labor hours. The following data pertain to the current year: Budgeted manufacturing overhead $1,800,000 Actual manufacturing overhead Budgeted labor hours Actual labor hours $ 1,813,500 90,000 92,200 Which of the following choices is the correct status of manufacturing overhead at year-end? a. Over-applied by $13,500 b. Under-applied by $13,500 c. Over-applied by $30,500 d. Under-applied by $30,500 e. Over-applied by $44,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...
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Tiffany charges manufacturing overhead to products by using a predetermined application rate,
computed on the basis of labor hours. The following data pertain to the current year:
Budgeted manufacturing overhead $1,800,000
Actual manufacturing overhead
Budgeted labor hours
Actual labor hours
$ 1,813,500
90,000
92,200
Which of the following choices is the correct status of manufacturing overhead at year-end?
a. Over-applied by $13,500
b. Under-applied by $13,500
c. Over-applied by $30,500
d. Under-applied by $30,500
e. Over-applied by $44,000
Transcribed Image Text:Tiffany charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labor hours. The following data pertain to the current year: Budgeted manufacturing overhead $1,800,000 Actual manufacturing overhead Budgeted labor hours Actual labor hours $ 1,813,500 90,000 92,200 Which of the following choices is the correct status of manufacturing overhead at year-end? a. Over-applied by $13,500 b. Under-applied by $13,500 c. Over-applied by $30,500 d. Under-applied by $30,500 e. Over-applied by $44,000
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