The Following Account Balances at the Beginning of January Were

question 77

Multiple Choice

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company:

Additional data:
1.Actual manufacturing overhead for January amounted to $62,000.
2.Total direct labor cost for January was $63,000.
3.The predetermined manufacturing overhead rate is based on direct labor cost.The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs.
4.The only job unfinished on January 31 was Job No.151,for which total direct labor charges were $5,200 (800 direct labor hours) and total direct material charges were $14,000.
5.Cost of direct materials placed in production during January totaled $123,000.There were no indirect material requisitions during January.
6.January 31 balance in raw materials inventory was $35,000.
7.Finished goods inventory balance on January 31 was $34,500.
Has manufacturing overhead been overallocated or underallocated and by what amount as of January 31?

• A)$26,200 overallocated
• B)$26,200 underallocated
• C)$17,000 overallocated
• D)$17,000 underallocated

---

Definitions:

Feedback

Information or opinions about one's performance or work, intended to provide insight or guide improvements.

Immediate Interaction

Direct and prompt communication or engagement between individuals or entities.

Backchannel

A discussion on social media that occurs simultaneously with the speaker's presentation, happening in real-time as the event unfolds.

Parallel Communication

A method of communication where messages are sent simultaneously across different channels or mediums.