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: $ 3,900,000 Actual manufacturing overhead: $ 3,917,000 Budgeted labor hours: 130,000 Actual labor hours: 132,300 Which of the following choices is the correct status of manufacturing overhead at year-end? a. Overapplied by $17,000. b. Underapplied by $17,000. c. Overapplied by $52,000. d. Underapplied by $52,000. e. Overapplied by $69,000.
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: $ 3,900,000 Actual manufacturing overhead: $ 3,917,000 Budgeted labor hours: 130,000 Actual labor hours: 132,300 Which of the following choices is the correct status of manufacturing overhead at year-end? a. Overapplied by $17,000. b. Underapplied by $17,000. c. Overapplied by $52,000. d. Underapplied by $52,000. e. Overapplied by $69,000.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 11PB: When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would...
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