Please hep me solve this thank you! Tevebaugh Corporation is a manufacturer that

Question

Please hep me solve this thank you!

Tevebaugh 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:

Results of operations:

The net operating income is:

Garrison 16e Rechecks 2017-08-28

Multiple Choice

$892,750

$765,750

$546,750

$1,111,750

Beginning inventories: Finished goods $ 30,000 Estimated total manufacturing overhead at the beginning of the year $ 568,000 Estimated direct labor-hours at the beginning of the year 32,000 direct labor-hours

Explanation / Answer

C) $546,750

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $568,000 ÷ 32,000 direct labor-hours = $17.75 per direct labor-hour

Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred= $17.75 per direct labor-hour × 33,000 direct labor-hours = $585,750

Actual manufacturing overhead incurred ($176,000 + $420,000) $596,000 Manufacturing overhead applied to Work in Process $585,750 Underapplied (overapplied) manufacturing overhead $10,250

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