Yista Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $510,000 for the year and direct labor-hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totaled $520,000. Actual direct labor-hours were 105,000. What was the overapplied or underapplied overhead for the year? A. $15,500 overappliedB. $30,000 underappliedC. $30,000 overappliedD. $10,000 underapplied

The correct answer is A.

Explanation:

Giving the following information:

The company estimated manufacturing overhead at $510,000 for the year and direct labor-hours at 100,000 hours.

The actual manufacturing overhead costs incurred during the year totaled $520,000. Actual direct labor-hours were 105,000.

First, we need to calculate the estimated overhead rate. After, we need to allocate overhead. Finally, we will calculate the over/under allocation.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 510,000/100,000= $5.1 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 5.1*105,000= $535,500

Over/under allocation= real MOH - allocated MOH

Over/under allocation=  520,000 - 535,500= $15,500 overallocated

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!