22. Hen Hao Professor Mullen, Ine applies overhead on the basis of data. compute overhead applied and the under- or overapplication of overthead for the period Estimated SS annual overhead cost $1,200,000 Actual SS annual overhead cost Estimated machine hours Actual machine hours A) $1,140,000 applied and $15,000 overapplied B) S1,200,000 applied and $15,000 overapplied C) S1,140,000 applied and $15,000 underapplied D) S1,145,000 applied and neither under-nor overapplied $1,155,000 400,000 380,000 23. If the Manufacturing Overhead (OH) account has a net Debit (DR) balance at the end of a period, it means that A) actual overhead costs were less than overhead costs applied to jobs. (Over Applied OH) B) actual overhead costs were greater than overhead costs applied to jobs. (Under Applied c) actual overhead costs were equal to overhead costs applied to jobs. (Neither Over nor D) Absolute Genius Professor Mullen has been awarded the Nobel Prize in Managerial OH) Under Applied) Accounting! 24. If Manufacturing Overhead (OH) has a net Credit (CR) balance at the end of the period, then A) Overhead has been Underapplied B) the Overhead applied to Work in Process Inventory (WIP) is less than the actual C) D) Overhead incurred. Overhead has been Overapplied. management must take corrective action and fire Lao Shu Professor Mullen 25. The Manufacturing Overhead (OH) account shows Debits (DR) of $30,000, s24,000, and $28,000 and one Credit (CR) for $86,000. Based on this information, manufacturing overhead (OH) A) has been Overapplied B) has been Underapplied. C) has not been Applied. D) shows a zero ($0) balance. 26. If Overhead (OH) has been Underapplied during the year, the Adjusting Journal Entry (AJE) to Close Out the OH Account at the end of the year will showa A) debit (DR) to Manufacturing Overhead (OH). B) credit (CR) to Cost of Goods Sold (CGS). C) debit (DR) to Work in Process (WIP) Inventory. D) debit (DR) to Cost of Goods Sold (CGS). Page 6