question archive Our company's actual manufacturing-cost expenditures for 2019 are below: Direct materials $2,000 Direct labor 4,000 Indirect materials 15,000 Indirect labor 130,000 Property taxes, factory 8,000 Utilities, factory 70,000 Depreciaiton, factory 240,000 Insurance, factory 10,000 We use normal absorption costing; overhead (OH) is applied to products at the budgeted (predetermined) OH rate of $25 per machine hour (MH)
Our company's actual manufacturing-cost expenditures for 2019 are below: Direct materials $2,000 Direct labor 4,000 Indirect materials 15,000 Indirect labor 130,000 Property taxes, factory 8,000 Utilities, factory 70,000 Depreciaiton, factory 240,000 Insurance, factory 10,000 We use normal absorption costing; overhead (OH) is applied to products at the budgeted (predetermined) OH rate of $25 per machine hour (MH)
Subject:AccountingPrice: Bought3
Our company's actual manufacturing-cost expenditures for 2019 are below: Direct materials $2,000 Direct labor 4,000 Indirect materials 15,000 Indirect labor 130,000 Property taxes, factory 8,000 Utilities, factory 70,000 Depreciaiton, factory 240,000 Insurance, factory 10,000 We use normal absorption costing; overhead (OH) is applied to products at the budgeted (predetermined) OH rate of $25 per machine hour (MH). On 1/1/2019, we estimated our MHs for the year 2019 at 20,000 MHs. During the year 2019, we actually used 21,400 MHs. At the end of 2019, what was our overapplied or underapplied overhead? A. $27,000 overapplied B. $27,000 underapplied C. $56,000 overapplied D. $62,000 overapplied E. $62,000 underapplied.
