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:

Obesity

A medical condition characterized by excessive body fat that increases the risk of health problems.

Body Fat

A component of the body that consists of stored energy in the form of fat cells, important for energy storage, insulation, and protection.

Gluttony

is considered one of the seven deadly sins, characterized by excessive eating or greed over food.

Hypothalamus

A region of the brain responsible for the regulation of many bodily functions, including hunger, thirst, temperature, and the release of hormones from the pituitary gland.