Question

The following accounts are from last year’s books at Sharp Manufacturing: Raw Materials Bal 0 (b) 157,000 (a) 171,500 14,500 Work In Process Bal 0 (f) 522,000 (b) 133,500 (c) 171,000 (e) 217,500 0 Finished Goods Bal 0 (g) 475,000 (f) 522,000 47,000 Manufacturing Overhead (b) 23,500 (e) 217,500 (c) 27,500 (d) 159,000 7,500 Cost of Goods Sold (g) 475,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overapplied or underapplied for the year?

Multiple Choice $7,500 underapplied $7,500 overapplied $27,500 underapplied $27,500 overapplied

Answer 1

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Sharp Manufacturing	Amount $
Manufacturing Overhead (b)	23,500.00
Manufacturing Overhead (e)	(217,500.00)
Manufacturing Overhead (c)	27,500.00
Manufacturing Overhead (d)	159,000.00
Over applied	(7,500.00)
So Manufacturing overhead is over applied for the year by $ 7,500.