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 overapplied or underapplied for the year?
A)$12,000 overapplied
B)$12,000 underapplied
C)$3,000 overapplied
D)$3,000 underapplied

Question

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 overapplied or underapplied for the year?
A)$12,000 overapplied 
B)$12,000 underapplied 
C)$3,000 overapplied 
D)$3,000 underapplied

Quizplus · Accepted Answer

The manufacturing overhead is overapplied by $3,000 because the manufacturing overhead applied of $100,000 exceeds the manufacturing overhead incurred by $3,000.

The Following Accounts Are from Last Year's Books at Sharp