Mgr. Acct 2123 - Chapter 3 HW (Summer 2020) 5) If manufacturing overhead is underapplied, then: A) actual manufacturing overhead cost is less than estimated manufacturing overhead cost B) the amount of manufacturing overhead cost applied to Work in Process is less than the actual manufacturing overhead cost incurred. C) the predetermined overhead rate is too high D) the Manufacturing Overhead account will have a credit balance at the end of the year. 6) Gullett Corporation had $26,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $75,000 of raw materials. The journal entry to record the purchase of raw materials would include a A) debit to Raw Materials of $101,000 B) credit to Raw Materials of $75,000 C) debit to Raw Materials of $75,000 D) credit to Raw Materials of $101,000 7) Molzahn Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year. $481,250 Estimated total manufacturing overhead at the beginning of the year Estimated direct labor-hours at the beginning of the year 35,000 direct labor- hours Results of operations: Actual direct labor-hours 40,000 direct labor-hours Manufacturing overhead: Indirect labor cost $ 179,000 Other manufacturing overhead costs incurred $ 465,000 Manufacturing overhead is overapplied or underapplied by A) $165,000 Overapplied B) $94,000 Underapplied C) $165,000 Underapplied D) $94,000 Overapplied