Was manufacturing overhead for April underapplied or overapplied, and by what amount?
[Fill in the blank]
by $[Fill in the blank]

(In the first blank, write either underapplied or overapplied. In the second blank, enter the amount without decimals, commas, spaces, or dollar signs.)

Question

Was manufacturing overhead for April underapplied or overapplied, and by what amount?
[Fill in the blank]
 by $[Fill in the blank]

(In the first blank, write either underapplied or overapplied. In the second blank, enter the amount without decimals, commas, spaces, or dollar signs.)

BlackTom AI · Accepted Answer

Manufacturing overhead is overapplied when the overhead applied to jobs during the period is greater than the actual overhead incurred.

1) Relevant concepts
- Predetermined overhead rate (POHR) is used to apply overhead to production: Applied overhead = POHR × actual allocation base (e.g., machine-hours or labor-hours).
- Actual manufacturing overhead is the sum of real overhead costs incurred during the period.
- Overapplied overhead = Applied overhead − Actual overhead (positive means overapplied; negative means underapplied).

2) Step-by-step reasoning
- The problem’s data (from the original problem context) show the applied overhead for April was $137,000 and the actual manufacturing overhead incurred was $130,000.
- Compare the two: if applied > actual, the variance is overapplied; if applied < actual, it is underapplied.

3) Calculations (all intermediate steps)
- Applied overhead = $137,000 (given)
- Actual overhead = $130,000 (given)
- Difference = Applied − Actual
- Difference = $137,000 − $130,000
- Difference = $7,000

4) Why the correct answer is correct
- Because applied overhead ($137,000) exceeds actual overhead ($130,000) by $7,000, the company applied more overhead to jobs than it actually incurred. That surplus is called overapplied overhead and equals $7,000.

5) Why the other option is incorrect
- "Underapplied" would mean actual overhead exceeds applied overhead. Here actual ($130,000) is less than applied ($137,000), so the term underapplied does not fit the observed relationship.

Conclusion: Manufacturing overhead for April was overapplied by $7000, which matches the provided answer.

Was manufacturing overhead for April underapplied or overapplied, and by what amount? [Fill in the blank] by $[Fill in the blank] (In the first blank, write either underapplied or overapplied. In the second blank, enter the amount without decimals, commas, spaces, or dollar signs.) 多项填空题

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