Arvay Corporation has provided data concerning the Corporation\'s Manufacturing

Question

Arvay Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of October. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $73,400 and the total of the credits to the account was $66,400. Which of the following statements is true? Manufacturing overhead applied to Work in Process for the month was $73,400. Actual manufacturing overhead incurred during the month was $66,400. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $73,400. Manufacturing overhead for the month was underapplied by $7,000.

Explanation / Answer

Under applied overheads = 73400 - 66400 = $7000

Thus a statement that Manufacturing overhead for the month was underapplied by $7,000 is true.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.