Reade Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: The total manufacturing overhead is underapplied or overapplied by how much?
A) $61,347 Underapplied
B) $32,395 Underapplied
C) $61,347 Overapplied
D) $32,395 Overapplied

Question

Reade Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:  The total manufacturing overhead is underapplied or overapplied by how much?
A) $61,347 Underapplied 
B) $32,395 Underapplied 
C) $61,347 Overapplied 
D) $32,395 Overapplied

Quizplus · Accepted Answer

11eacbfc_c7ed_5b9a_8ffe_e32a7eb9b03f_TB7552_00

Reade Incorporated Makes a Single Product-An Electrical Motor Used in Many