Tiffany charges manufacturing overhead to products by using a - 15536

Solution Posted by
yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $0.50
  • From: Business,
  • Posted on: Thu 07 Mar, 2013
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

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: $ 1,810,000
 Budgeted labor hours: 60,000
 Actual labor hours: 61,500
 

Which of the following choices is the correct status of manufacturing overhead at year-end?
 
Overapplied by $10,000.
 
Underapplied by $10,000.
 
Overapplied by $35,000.
 
Underapplied by $35,000.
 
Overapplied by $45,000.
                                        

Solution Description

 

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 ov