Saint Johns Corporation uses a job-order costing system and has provided the following partially completed summary T-accounts for the just completed period: Manufacturing overhead for the period was:
A) $7,000 Underapplied
B) $73,000 Underapplied
C) $73,000 Overapplied
D) $7,000 Overapplied

Question

Saint Johns Corporation uses a job-order costing system and has provided the following partially completed summary T-accounts for the just completed period:   Manufacturing overhead for the period was:
A) $7,000 Underapplied 
B) $73,000 Underapplied 
C) $73,000 Overapplied 
D) $7,000 Overapplied

Quizplus · Accepted Answer

The total debits to the Manufacturing Overhead T-account are $80,000, which represents the actual overhead costs incurred. The total credits to the account are $153,000, which represents the applied overhead. This results in an overapplication of $73,000 ($153,000 - $80,000 = $73,000). Therefore, the answer is C, $73,000 Overapplied.

Saint Johns Corporation Uses a Job-Order Costing System and Has