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Heathcote Corporation is a manufacturer that uses job -order costing. The company closes out any over-applied or under-applied overhead to Cost of Goods Sold at the end of the year.
Estimated total manufacturing overhead at the beginning of the year $546,000
Estimated direct labor-hours at the beginning of the year 42,000 direct labor-hours
Results of operation:
Actual direct labor-hours 47,000 direct labor-hours
Manufacturing overhead
Indirect labor cost $152,000
Other manufacturing overhead costs incurred $454,000
Cost of goods manufactured $1,569,000
Cost of goods sold (unadjusted) $1,458,000
Manufacturing overhead is overapplied or underapplied by:
A: $5,000 over-applied
B: $186,000 under-applied
C: $5,000 under-applied
D: $186,000 overapplied
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Answers: 3
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Heathcote Corporation is a manufacturer that uses job -order costing. The company closes out any ove...
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