Question :
126.Barnes Company applies overhead the basis of machine hours. Given : 1311617
126.Barnes Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:
Estimated annual overhead cost$3,000,000
Actual annual overhead cost$2,940,000
Estimated machine hours300,000
Actual machine hours290,000
a.$2,900,000 applied and $40,000 overapplied
b.$3,000,000 applied and $40,000 overapplied
c.$2,900,000 applied and $40,000 underapplied
d.$2,940,000 applied and neither under- nor overapplied
127.A company assigned overhead to work in process. At year end, what does the amount of overapplied overhead mean?
a.The overhead assigned to work in process is greater than the estimated overhead costs.
b.The overhead assigned to work in process is less than the estimated overhead costs.
c.The overhead assigned to work in process is less than the actual overhead.
d.The overhead assigned to work in process is greater than the overhead incurred.
128.If the Manufacturing Overhead account has a debit balance at the end of a period, it means that
a.actual overhead costs were less than overhead costs applied to jobs.
b.actual overhead costs were greater than overhead costs applied to jobs.
c.actual overhead costs were equal to overhead costs applied to jobs.
d.no jobs have been completed.
129.If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period, overhead is said to be
a.underapplied.
b.overapplied.
c.in error.
d.prepaid.
130.At the end of the year, any balance in the Manufacturing Overhead account is generally eliminated by adjusting
a.Work In Process Inventory.
b.Finished Goods Inventory.
c.Cost of Goods Sold.
d.Raw Materials Inventory.
131.If Manufacturing Overhead has a credit balance at the end of the period, then
a.overhead has been underapplied.
b.the overhead assigned to Work in Process Inventory is less than the overhead incurred.
c.overhead has been overapplied.
d.management must take corrective action.
132.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
a.has been overapplied.
b.has been underapplied.
c.has not been applied.
d.shows a zero balance.
133.If Manufacturing Overhead has a debit balance at the end of the period, then
a.overhead has been underapplied.
b.the overhead assigned to Work in Process Inventory is more than the overhead incurred.
c.overhead has been overapplied.
d.management must take corrective action.
134.If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:
a.underapplied.
b.overapplied.
c.a loss on the income statement under “Other Expenses and Losses.”
d.considered a miscellaneous expense.
135.If actual overhead is less than applied manufacturing overhead, then manufacturing overhead is:
a.underapplied.
b.overapplied.
c.a loss on the income statement under “Other Expenses and Losses.”
d.considered a miscellaneous expense.
