Chapter 4, Problem 4.19MCQ

ABC Company uses job-order costing and has assembled the following cost data for the production and assembly of item X;

Direct manufacturing labor wages	$35,000
Direct material used	70,000
Indirect manufacturing labor	4,000
Utilities	400
Fire insurance	500
Manufacturing overhead applied	11,000
Indirect materials	6,000
Depreciation on equipment	600

Based on the above cost data, the manufacturing overhead for item X is:

1. a. $500 overallocated.
2. b. $600 underallocated.
3. c. $500 underallocated
4. d. $600 overallocated.