Molzahn Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Estimated total manufacturing overhead at the beginning 5481,250
of the year
Estimated direct labor-hours at the beginning of the year 35,000 direct labor hours
Results of operations:
Actual direct labor-hours 40,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $179.000
Other manufacturing overhead costs incurred 5465,000
Manufacturing overhead is overapplied or underapplied by:.
A) $165,000 Overapplied
B) $94,000 Underapplied
C) $165,000 Underapplied
D) $94,000 Overapplied