Answer:
d. $10,000 underapplied.
Step-by-step explanation:
Cost of goods manufactured = Cost of goods available for sale - Beginning Finished goods
Cost of goods manufactured = 950000 - 115000
Cost of goods manufactured = $835,000
Total manufacturing Costs = Cost of goods manufactured + Ending Work in process - Beginning Work in process
Total manufacturing Costs = 835000 + 42000 - 66000
Total manufacturing Costs = $811,000
Direct Materials used = 77000 + 324000 - 40000
Direct Materials used = $361,000
Direct Materials used + Direct Labor + Factory Overhead applied = Total Manufacturing costs
361000 + Direct labor + 125% of Direct labor = 811000
225% of Direct labor = $811000 - $361000
225% of Direct labor = $450000
Direct labor = $450000 / 225%
Direct labor = $200,000
Factory Overhead applied = $200,000*125%
Factory Overhead applied = $250,000
Underapplied Overhead = Actual Overhead - Applied Overhead
Underapplied Overhead = $260000 - $250000
Underapplied Overhead = $10,000 (underapplied)