Question

The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead Select one: a. has been overapplied b. has been underapplied c. has not been applied d. shows a zero balance

Answer 1

Answer:a) has been over applied

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Explanation:

Answer 2

Answer:A. has been overapplied.

Explanation:An overapplied Manufacturing overhead means that the net credit to the Manufacturing overhead account is more than the net debits as seen in this case where there were debits as follows;

$30,000,$24,000 and $28,000 which is equal to a total net debit of $82,000.

The total net credit in the Manufacturing overhead was $86,000.

THE EXCESS APPLIED TO OVERHEAD IS TOTAL CREDIT MINUS TOTAL DEBITS

=$86,000-82,000

=$4,000.

THIS MEANS THAT THE MANUFACTURING OVERHEAD HAS BEEN OVERAPPLIED WITH A VALUE OF $4,000.