Reference no: EM131295037
1. Huxtable charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year:
Budgeted manufacturing overhead: $490,000
Actual manufacturing overhead: $ 448,000
Budgeted machine hours: 24,500
Actual machine hours: 19,540
Overhead applied to production totaled:
$ 358,800.
$ 390,800.
$ 556,800.
$ 606,800.
some other amount.
2. Tiffany charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labor hours. The following data pertain to the current year:
Budgeted manufacturing overhead: $ 1,800,000
Actual manufacturing overhead: $ 1,812,000
Budgeted labor hours: 90,000
Actual labor hours: 92,200
Which of the following choices is the correct status of manufacturing overhead at year-end?
Overapplied by $12,000.
Underapplied by $12,000.
Overapplied by $32,000.
Underapplied by $32,000.
Overapplied by $44,000.
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