Amount of overapplied or underapplied overhead


Question 1: On January 1, the soldering department had 689 units in inventory. The department transferred 7,449 units to the next department during January and there were 892 units in inventory on January 31. How many units were received by the department during January?

A. 7,246

B. 9,030

C. 7,652

D. 5,868

Question 2:  The Springfield Company uses a process costing system. During January the processing department transferred out 49,000 units. The January 31st work-in-process inventory in the processing department consisted of 41,000 equivalent units of material and 18,000 equivalent units of labor and overhead. The cost per equivalent unit was $3.75 for materials and $4.95 for labor and overhead. The "Total Cost to Account for" section of the production report for September will show which of the following amounts?

A. $242,850

B. $513,300

C. $426,300

D. $669,150

Question 3: Nampa Company had $380,000 in direct labor costs this year. Manufacturing overhead was applied at a predetermined rate of $2.00 per direct labor dollar. If actual overhead incurred was $800,000, what was the amount of overapplied or underapplied overhead?

A. $380,000 underapplied

B. $380,000 overapplied

C. $40,000 overapplied

D. $40,000 underapplied

Question 4: In the forming department, all the materials are added at the beginning of the processing in the department. At the end of the year, 18,000 units remain in Work in Process inventory in the department. With respect to materials, how many equivalent units are in ending inventory?

A. 0

B. 9,000

C. 18,000

D. 16,000

Question 5: Nosby Company applies overhead based on direct labor hours at a rate of $20 per direct labor hour. Job HAMA has accumulated $4,000 of direct material cost and $3,000 of labor at $25 per hour. What is the total cost of the job HAMA?

A $9,400

B $8,500

C $7,000

D $11,500

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Accounting Basics: Amount of overapplied or underapplied overhead
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