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Tiffany Charges Manufacturing Overhead to Products by Using a Predetermined

Question 42

Multiple Choice

Tiffany charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labour hours. The following data pertain to the current year: Budgeted manufacturing overhead: $1,800,000
Actual manufacturing overhead: $1,810,000
Budgeted labour hours: 60,000
Actual labour hours: 61,500
Which of the following choices denotes the correct status of manufacturing overhead at year-end?


A) Overapplied by $10,000.
B) Underapplied by $10,000.
C) Overapplied by $35,000.
D) Underapplied by $35,000.
E) Overapplied by $45,000.

Correct Answer:

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