Question

The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead ____.

(A) not been applied.
(B) shows a zero balance.
(C) has been underapplied.
(D) has been overapplied.

Answer 1

(D) has been overapplied.

Step-by-step explanation:

Provided information

Credit balance of Manufacturing overhead account = $86,000

Debit balance of Manufacturing overhead account would be

= $30,000 + $24,000 + $28,000

= $82,000

Since the debit balance is $82,000 and the credit balance is $86,000 which reflect that the overhead is over applied by $4,000 i.e

= $82,000 - $86,000

= $4,000