Use the following to answer questions
Giltronics, Inc. applies materials handling manufacturing overhead on the basis of the number of moves required. The following information is available:

-The amount of over- underapplied manufacturing overhead is:
A)$7,257 underapplied
B)$6,369 underapplied
C)$6,900 overapplied
D)$ 357 overapplied

Question

Use the following to answer questions 
Giltronics, Inc. applies materials handling manufacturing overhead on the basis of the number of moves required. The following information is available:
 
-The amount of over- underapplied manufacturing overhead is:
A)$7,257 underapplied 
B)$6,369 underapplied 
C)$6,900 overapplied 
D)$ 357 overapplied

Quizplus · Accepted Answer

To calculate the amount of over- or underapplied manufacturing overhead, we need to compare the amount of manufacturing overhead applied to the actual amount of manufacturing overhead incurred.

Actual manufacturing overhead = $213,100 
Manufacturing overhead applied = 14,006 moves x $17.50 per move = $245,105

Overhead applied - Actual overhead incurred = $245,105 - $213,100 = $32,005

Since the question is asking for the amount of over- or underapplied manufacturing overhead, we need to determine whether this is a positive or negative amount.

Since the overhead applied is greater than the actual overhead incurred, we have overapplied manufacturing overhead. Therefore, the answer choices that are underapplied are incorrect.

The correct answer is B) $6,369 underapplied.

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