Neptune Fabrication Plant Has Provided You with the Following Information

question 92

Multiple Choice

Neptune Fabrication Plant has provided you with the following information: $\begin{array}{|l|r|}\hline \text { Total manufacturing overhead costs estimated at the }\\ \text { beginning of the year } & \$ 243,000 \\\hline \text { Total direct labor costs estimated at the beginning of the } & \$ 124,000 \\\text { year } & \\\hline \text { Total direct labor hours estimated at the beginting of the } & 5400 \text { direct labor hours } \\\text { year } & \\\hline \text { Actual manufacturing overhead costs for the year } &\$ 245,000 \\\hline \text { Actual direct labor costs for the year } &\$ 135,000 \\\hline \text { Actual direct labor hours for the year } & 4500 \text { direct labor hours } \\\hline \end{array}$
The company bases its manufacturing overhead allocation on direct labor hours. What was the unadjusted ending balance in the Manufacturing Overhead account?

• A) $19,556 credit balance
• B) $19,556 debit balance
• C) $42,500 credit balance
• D) $42,500 debit balance

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Definitions:

Organizational Chart

A diagram that displays the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Direct Supervision

A management approach where supervisors closely oversee the work process and tasks of their subordinates.

Formal Instructions

The provision of structured and official guidance or directives, often in an educational or organizational setting.

Standardizing Skills

The ability to implement and adhere to uniform procedures or measures across different activities or operations to ensure consistency.