Juarez, Inc How Much Is Over or Underapplied Overhead for May?
A)$320

question 38

Multiple Choice

Juarez, Inc.designs and manufactures custom cabinets.The company uses a job-order costing system, and the allocates overhead at $18 per direct labor hour.Over or underapplied overhead is not material.During May, Juarez's transactions included the following: $\begin{array}{lr}\text { Direct labor cost incurred at } \$ 15 \text { an hour } & \$ 5,400 \\\text { Manufacturing overhead cost incurred } & 6,800 \\\text { Direct materials purchased } & 11,500 \\\text { Raw materials inventory, beginning } & 160\\\text { Raw materials inventory, ending } & 280 \\\text { Sales } & 23,000 \\\text { Selling expenses } & 2,100 \\\text { Work in process inventory, beginning } & 220 \\\text { Work in process inventory, ending } & 250\end{array}$ How much is over or underapplied overhead for May?

• A)$320 underapplied
• B)$1,400 overapplied
• C)$6,800 underapplied
• D)More information is needed

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