During 2012, Crema Manufacturing Expected Job 59 to Cost $300,000

question 131

Multiple Choice

During 2012, Crema Manufacturing expected Job 59 to cost $300,000 of overhead, $500,000 of material, and $200,000 in labour.Crema applied overhead based on direct labour cost.Actual production required an overhead cost of $280,000, $550,000 in materials used; and $220,000 in labour.All of the goods were completed.How much is the amount of over/under applied overhead?

• A)$50,000 under-applied
• B)$50,000 over-applied
• C)$20,000 under-applied
• D)$20,000 over-applied

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