Answer:
A. Manufacturing overhead was overapplied by $15,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $274,000
Step-by-step explanation:
Budgeted Overheads are usually used to compute the Cost of Goods Sold bu Manufacturing Firms.This is because the use of Actual overheads delays the product costing process.
OverApplied or UnderApplied = Applied overheads-Actual Overheads
and if:
Applied overheads>Actual Overheads we have Overapplied Overheads
Applied overheads<Actual Overheads we have Underapplied Overheads
Overapplied Overheads reduce the cost of Overhead Account and Consequently reduce cost of Sales.
Underapplied Overheads increase the cost of Overhead Account and Consequently increase cost of Sales.