(Appendix 10A) Kisler Incorporated makes a single product--a cooling coil used in commercial refrigerators. 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) $32,123 Underapplied
B) $27,454 Overapplied
C) $27,454 Underapplied
D) $32,123 Overapplied

Question

(Appendix 10A) Kisler Incorporated makes a single product--a cooling coil used in commercial refrigerators. 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) $32,123 Underapplied 
B) $27,454 Overapplied 
C) $27,454 Underapplied 
D) $32,123 Overapplied

Quizplus · Accepted Answer

11ea7761_173b_a7b2_81a5_13a666f1a898_TB2580_00

(Appendix 10A) Kisler Incorporated Makes a Single Product--A Cooling Coil