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Asked by sophia dudich on May 21, 2024

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The following accounts are from last year's books at Sharp Manufacturing: The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year? A) $6,000 underapplied B) $6,000 overapplied C) $26,000 underapplied D) $26,000 overapplied The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year? A) $6,000 underapplied B) $6,000 overapplied C) $26,000 underapplied D) $26,000 overapplied The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year? A) $6,000 underapplied B) $6,000 overapplied C) $26,000 underapplied D) $26,000 overapplied The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year? A) $6,000 underapplied B) $6,000 overapplied C) $26,000 underapplied D) $26,000 overapplied The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year? A) $6,000 underapplied B) $6,000 overapplied C) $26,000 underapplied D) $26,000 overapplied Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year?

A) $6,000 underapplied
B) $6,000 overapplied
C) $26,000 underapplied
D) $26,000 overapplied

Job-Order Costing

A costing method used to calculate the costs associated with producing specific orders or batches, where the costs for materials, labor, and overhead are compiled and assigned to each job individually.

Overapplied Overhead

A situation where the overhead costs allocated to products or services exceed the actual overhead costs incurred.

Underapplied Overhead

Underapplied overhead occurs when the allocated amount of overhead costs in a costing system is less than the actual overhead incurred.

  • Comprehend how overapplied or underapplied manufacturing overhead affects the cost of goods sold.
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Nirav ParmarMay 21, 2024
Final Answer :
B
Explanation :
Since the question asks for manufacturing overhead overapplied or underapplied, we just need to compare actual MOH with applied MOH. There is no information given about actual MOH, so we need to calculate applied MOH by multiplying the predetermined overhead rate with actual DL cost. The predetermined overhead rate can be calculated as follows:
Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total direct labor cost
= $690,000 / $460,000
= $1.50 per DL dollar
Now let's calculate applied MOH:
Job Since the question asks for manufacturing overhead overapplied or underapplied, we just need to compare actual MOH with applied MOH. There is no information given about actual MOH, so we need to calculate applied MOH by multiplying the predetermined overhead rate with actual DL cost. The predetermined overhead rate can be calculated as follows: Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total direct labor cost = $690,000 / $460,000 = $1.50 per DL dollar Now let's calculate applied MOH: Job : DL cost = $10,000, MOH applied = 1.5 x 10,000 = $15,000 Job : DL cost = $20,000, MOH applied = 1.5 x 20,000 = $30,000 Job : DL cost = $30,000, MOH applied = 1.5 x 30,000 = $45,000 Job : DL cost = $15,000, MOH applied = 1.5 x 15,000 = $22,500 Job : DL cost = $25,000, MOH applied = 1.5 x 25,000 = $37,500 Total DL cost = $100,000, Total MOH applied = $150,000 Therefore, MOH overapplied by $6,000 ($150,000 - $144,000) which means that manufacturing overhead was applied more than the actual MOH.: DL cost = $10,000, MOH applied = 1.5 x 10,000 = $15,000
Job Since the question asks for manufacturing overhead overapplied or underapplied, we just need to compare actual MOH with applied MOH. There is no information given about actual MOH, so we need to calculate applied MOH by multiplying the predetermined overhead rate with actual DL cost. The predetermined overhead rate can be calculated as follows: Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total direct labor cost = $690,000 / $460,000 = $1.50 per DL dollar Now let's calculate applied MOH: Job : DL cost = $10,000, MOH applied = 1.5 x 10,000 = $15,000 Job : DL cost = $20,000, MOH applied = 1.5 x 20,000 = $30,000 Job : DL cost = $30,000, MOH applied = 1.5 x 30,000 = $45,000 Job : DL cost = $15,000, MOH applied = 1.5 x 15,000 = $22,500 Job : DL cost = $25,000, MOH applied = 1.5 x 25,000 = $37,500 Total DL cost = $100,000, Total MOH applied = $150,000 Therefore, MOH overapplied by $6,000 ($150,000 - $144,000) which means that manufacturing overhead was applied more than the actual MOH.: DL cost = $20,000, MOH applied = 1.5 x 20,000 = $30,000
Job Since the question asks for manufacturing overhead overapplied or underapplied, we just need to compare actual MOH with applied MOH. There is no information given about actual MOH, so we need to calculate applied MOH by multiplying the predetermined overhead rate with actual DL cost. The predetermined overhead rate can be calculated as follows: Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total direct labor cost = $690,000 / $460,000 = $1.50 per DL dollar Now let's calculate applied MOH: Job : DL cost = $10,000, MOH applied = 1.5 x 10,000 = $15,000 Job : DL cost = $20,000, MOH applied = 1.5 x 20,000 = $30,000 Job : DL cost = $30,000, MOH applied = 1.5 x 30,000 = $45,000 Job : DL cost = $15,000, MOH applied = 1.5 x 15,000 = $22,500 Job : DL cost = $25,000, MOH applied = 1.5 x 25,000 = $37,500 Total DL cost = $100,000, Total MOH applied = $150,000 Therefore, MOH overapplied by $6,000 ($150,000 - $144,000) which means that manufacturing overhead was applied more than the actual MOH.: DL cost = $30,000, MOH applied = 1.5 x 30,000 = $45,000
Job Since the question asks for manufacturing overhead overapplied or underapplied, we just need to compare actual MOH with applied MOH. There is no information given about actual MOH, so we need to calculate applied MOH by multiplying the predetermined overhead rate with actual DL cost. The predetermined overhead rate can be calculated as follows: Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total direct labor cost = $690,000 / $460,000 = $1.50 per DL dollar Now let's calculate applied MOH: Job : DL cost = $10,000, MOH applied = 1.5 x 10,000 = $15,000 Job : DL cost = $20,000, MOH applied = 1.5 x 20,000 = $30,000 Job : DL cost = $30,000, MOH applied = 1.5 x 30,000 = $45,000 Job : DL cost = $15,000, MOH applied = 1.5 x 15,000 = $22,500 Job : DL cost = $25,000, MOH applied = 1.5 x 25,000 = $37,500 Total DL cost = $100,000, Total MOH applied = $150,000 Therefore, MOH overapplied by $6,000 ($150,000 - $144,000) which means that manufacturing overhead was applied more than the actual MOH.: DL cost = $15,000, MOH applied = 1.5 x 15,000 = $22,500
Job Since the question asks for manufacturing overhead overapplied or underapplied, we just need to compare actual MOH with applied MOH. There is no information given about actual MOH, so we need to calculate applied MOH by multiplying the predetermined overhead rate with actual DL cost. The predetermined overhead rate can be calculated as follows: Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total direct labor cost = $690,000 / $460,000 = $1.50 per DL dollar Now let's calculate applied MOH: Job : DL cost = $10,000, MOH applied = 1.5 x 10,000 = $15,000 Job : DL cost = $20,000, MOH applied = 1.5 x 20,000 = $30,000 Job : DL cost = $30,000, MOH applied = 1.5 x 30,000 = $45,000 Job : DL cost = $15,000, MOH applied = 1.5 x 15,000 = $22,500 Job : DL cost = $25,000, MOH applied = 1.5 x 25,000 = $37,500 Total DL cost = $100,000, Total MOH applied = $150,000 Therefore, MOH overapplied by $6,000 ($150,000 - $144,000) which means that manufacturing overhead was applied more than the actual MOH.: DL cost = $25,000, MOH applied = 1.5 x 25,000 = $37,500
Total DL cost = $100,000, Total MOH applied = $150,000
Therefore, MOH overapplied by $6,000 ($150,000 - $144,000) which means that manufacturing overhead was applied more than the actual MOH.

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