Question

Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of September. 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 $97,000 and the total of the credits to the account was $67,000. Which of the following statements is true?

A. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $75,000.
B. Actual manufacturing overhead incurred during the month was $56,000.
C. Manufacturing overhead applied to Work in Process for the month was $75,000.
D. Manufacturing overhead for the month was underapplied by $19,000.

Answer 1

Manufacturing overhead for the month was underapplied by $30,000.

Step-by-step explanation:

Since it is given that

The debit to the manufacturing overhead is $97,000

And, the total credit is $67,000

So, the remaining amount would be

= $97,000 - $67,000

= $30,000

This $30,000 represent the underapplied overhead

This is the correct answer but the same is not provided in the given options