The following accounts are from last year's books at Sharp Manufacturing: Raw Materials Bal 0 (b) 155,200 (a) 167,000 11,800 Work In Process Bal 0 (f) 514,800 (b) 132,600 (c) 169,200 (e) 213,000 0 Finished Goods Bal 0 (g) 466,000 (f) 514,800 48,800 Manufacturing Overhead (b) 22,600 (e) 213,000 (c) 26,600 (d) 157,200 6,600 Cost of Goods Sold (g) 466,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year?

Question

Business

Urijah Kaufman

19 March, 04:02

The following accounts are from last year's books at Sharp Manufacturing: Raw Materials Bal 0 (b) 155,200 (a) 167,000 11,800 Work In Process Bal 0 (f) 514,800 (b) 132,600 (c) 169,200 (e) 213,000 0 Finished Goods Bal 0 (g) 466,000 (f) 514,800 48,800 Manufacturing Overhead (b) 22,600 (e) 213,000 (c) 26,600 (d) 157,200 6,600 Cost of Goods Sold (g) 466,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year?

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Answers (1)

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Marilyn Barber · Answer 1

Answer: The manufacturing overhead over applied by $6,600.

Explanation:

Given that,

Manufacturing Overhead from last year's books at Sharp Manufacturing:

(b) 22,600

(c) 26,600

(d) 157,200

(e) 213,000

Actual manufacturing overhead = b + c + d

= 22,600 + 26,600 + 157,200

= $206,400

Manufacturing Overhead applied = e = $213,000

Manufacturing overhead applied is $213,000 but actual manufacturing overhead is $206,400

Hence,

Manufacturing overhead over applied by:

= Manufacturing Overhead applied - Actual manufacturing overhead

= $213,000 - $206,400

= $6,600

Therefore, the manufacturing overhead over applied by $6,600.