Echher Corporation Uses a Job-Order Costing System and Applies Overhead

question 133

Multiple Choice

Echher Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $218,000 and credited for $218,500. The ending balance in the Finished Goods inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied by $36,700.
-The manufacturing overhead for the year was:

• A) $6,000 overapplied
• B) $10,000 overapplied
• C) $10,000 underapplied
• D) $4,000 underapplied

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Definitions:

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