Snappy Company Has a Job-Order Cost System and Uses a Predetermined

question 13

Multiple Choice

Snappy Company has a job-order cost system and uses a predetermined overhead rate based on direct Labour-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct Labour-hours were estimated at £100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of £5,000 in direct materials and £2,400 in direct Labour. The Labour rate is £6 per hour. By the end of the year, Snappy had worked a total of 45,000 direct Labour-hours and had incurred £110,250 actual manufacturing overhead cost.
-Snappy's manufacturing overhead for the year was:

• A)£10,250 underapplied.
• B)£12,500 overapplied.
• C)£12,500 underapplied.
• D)£2,250 overapplieD.

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Definitions:

Oral

Pertaining to the mouth, including the delivery of communication or medication.

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Information or content that has been recorded in a tangible form through handwriting, typing, or printing.

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