Question

22. Hen Hao Professor Mullen, Inc applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under-or overapplication of overhead for the period: Estimated SS annual overhead cost $1,200,000 Actual SS annual overhead cost $1,155,000 Estimated machine hours 400,000 Actual machine hours 380,000 A) $1,140,000 applied and $15,000 overapplied B) $1,200,000 applied and $15,000 overapplied C) $1,140,000 applied and $15,000 underapplied D) $1,145,000 applied and neither under- nor overapplied 23. If the Manufacturing Overhead (OH) account has a net Debit (DR) balance at the end of a period, it means that A) actual overhead costs were less than overhead costs applied to jobs. (Over Applied OH) B) actual overhead costs were greater than overhead costs applied to jobs. (Under Applied OH) C) actual overhead costs were equal to overhead costs applied to jobs. (Neither Over nor Under Applied) D) Absolute Genius Professor Mullen has been awarded the Nobel Prize in Managerial Accounting! 24. If Manufacturing Overhead (OH) has a net Credit (CR) balance at the end of the period, then A) Overhead has been Underapplied. B) the Overhead applied to Work in Process Inventory (WIP) is less than the actual Overhead incurred. C) Overhead has been Overapplied. D) management must take corrective action and fire Lao Shu Professor Mullen 25. The Manufacturing Overhead (OH) account shows Debits (DR) of $30,000, $24,000, and $28,000 and one Credit (CR) for $86,000. Based on this information, manufacturing overhead (OH) A) has been Overapplied. B) has been Underapplied. C) has not been Applied. D) shows a zero (50) balance. 26. If Overhead (OH) has been Underapplied during the year, the Adjusting Journal Entry (AJE) to Close Out the OH Account at the end of the year will show a A) debit (DR) to Manufacturing Overhead (OH). B) credit (CR) to Cost of Goods Sold (CGS). C) debit (DR) to Work in Process (WIP) Inventory. D) debit (DR) to Cost of Goods Sold (CGS).
skip 23,24,26

Answer 1

Okay. I'm solving 22 and 25

22. Overhead rate = 1,200,000/400,000 = 3 per mh Applied overhead = 3*380,000 = 1,140,000 Underapplied overhead = 1,155,000 - 1,140,000 = 15,000 Option C

25. Option B