Rivertown Products Applied Overhead to Jobs at a Rate of $10.00

question 115

Multiple Choice

Rivertown Products applied overhead to jobs at a rate of $10.00 per direct labor hour.If the budgeted manufacturing overhead was $660,000 and the actual manufacturing overhead incurred was $630,000, how much under or over applied overhead did Rivertown have?

• A)$30,000 underapplied
• B)$30,000 overapplied
• C)$60,000 overapplied
• D)Information provided is not sufficient to derive the answer

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Definitions:

General Ledger Account

A comprehensive record containing all the financial transactions of a business.

Aging

A method used in accounting to categorize a company's accounts receivables according to the length of time an invoice has been outstanding.

Accounts Receivable

The funds owed to a company by customers for goods or services delivered or used but not yet paid for.