Trident Corp 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: $4,200,000 • Actual manufacturing overhead: $4,250,000 • Budgeted labor hours: 140,000 hours • Actual labor hours: 142,500 hours Which of the following choices is the correct status of manufacturing overhead at year-end? a. Overapplied by $25,000 b. Underapplied by $50,000 c. Overapplied by $75,000 d. Underapplied by $75,000 e. Overapplied by $100,000

Trident Corp 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: $4,200,000 • Actual manufacturing overhead: $4,250,000 • Budgeted labor hours: 140,000 hours • Actual labor hours: 142,500 hours Which of the following choices is the correct status of manufacturing overhead at year-end? a. Overapplied by $25,000 b. Underapplied by $50,000 c. Overapplied by $75,000 d. Underapplied by $75,000 e. Overapplied by $100,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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