Exercise 4-4 Determine Underapplied or Overapplied Overhead [LO4-4]

Kirkaid Company recorded the following transactions for the just completed month:

a. $90,000 in raw materials were requisitioned for use in production. Of this amount, $75,000 was for direct materials and the remainder was for indirect materials.

b. Total labor wages of $114,000 were incurred. Of this amount, $108,000 was for direct labor and the remainder was for indirect labor.

c. Additional actualmanufacturing overhead costs of $200,000 were incurred.

d. A total of $230,000 in manufacturing overhead was applied to jobs.

Required:

Determine the underapplied or overapplied overhead for the month.

manufacturing overhead