Business, 07.06.2020 03:01, lacyjoness
Molzahn Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year:
Estimated total manufacturing overhead at the beginning of the year $481,250
Estimated direct labor-hours at the beginning of the year 35,000 Direct labor-hours
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
Answers: 1
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