Question

Stoneside Inc. has provided you with the following information for its Manufacturing Overhead account at the end of the period. Actual manufacturing overhead costs incurred total $31,910. The company applied manufacturing overhead cost in the amount of $28,900. What is the overapplied or underapplied manufacturing overhead

Answer 1

Under applied overhead of $3,010

Step-by-step explanation:

Actual manufacturing overhead

$31,910

Less:

Applied manufacturing overhead

($28,900)

Under applied overhead

$3,010

The difference between actual overhead incurred and the overhead applied is under applied or over applied manufacturing overhead.

With regards to the above, it is under applied manufacturing overhead because applied overhead is less than actual overhead.