Question Details

Overhead costs are underapplied if the amount applied to Work in Process is 



1. Overhead costs are underapplied if the amount applied to Work in Process is 
A. greater than estimated overhead.
B. less than estimated overhead.
C. greater than actual overhead incurred.
D. less than actual overhead incurred.
2. Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $415,000, and actual labor hours were 21,000. Which of the following would be correct? 
A. Overhead is underapplied by $15,000
B. Overhead is underapplied by $5,000
C. Overhead is overapplied by $5,000
D. Overhead is overapplied by $15,000
 3. Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $215,000, and actual labor hours were 21,000. Which of the following would be correct? 
A. Overhead is underapplied by $15,000
B. Overhead is underapplied by $5,000
C. Overhead is overapplied by $5,000
D. Overhead is overapplied by $15,000
 4. Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $225,000, and actual direct labor hours were 19,000. Which of the following would be correct? 
A. Overhead is underapplied by $25,000
B. Overhead is underapplied by $12,500
C. Overhead is overapplied by $12,500
D. Overhead is overapplied by $25,000
5. The most common method for disposing of over- or underapplied overhead is to 
A. recalculate the overhead rate for the period.
B. recalculate the overhead rate for the next period.
C. make a direct adjustment to Work in Process Inventory.
D. make a direct adjustment to Cost of Goods Sold.




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