The following accounts are from last year’s books at sharp manufacturing: raw materials bal 0 (b) 155,200 (a) 167,000 11,800 work in process bal 0 (f) 514,800 (b) 132,600 (c) 169,200 (e) 213,000 0 finished goods bal 0 (g) 466,000 (f) 514,800 48,800 manufacturing overhead (b) 22,600 (e) 213,000 (c) 26,600 (d) 157,200 6,600 cost of goods sold (g) 466,000 sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. what is the manufacturing overhead overapplied or underapplied for the year?

The manufacturing overhead over applied by $6,600.

Explanation:

Given that,

Manufacturing Overhead from last year’s books at Sharp Manufacturing:

(b) 22,600

(c) 26,600

(d) 157,200

(e) 213,000

Actual manufacturing overhead = b + c + d

                                                     = 22,600 + 26,600 +  157,200

                                                     = $206,400

Manufacturing Overhead applied = e = $213,000

Manufacturing overhead applied is $213,000 but actual manufacturing overhead is  $206,400

Hence,

Manufacturing overhead over applied by:

= Manufacturing Overhead applied - Actual manufacturing overhead

= $213,000 - $206,400

= $6,600

Therefore, the manufacturing overhead over applied by $6,600.

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