Omaha Industries is a manufacturer that uses job-order costing and applies overhead to production using a single factory wide overhead rate. Omaha provides you with the following budgeted and actual information regarding its current year manufacturing operations:

For purposes of this question only, assume Omaha applies overhead to production jobs using direct labor dollars as its cost driver. Select the answer choice below that shows the value of the company's over or under applied overhead for the current year.

Group of answer choices

$30,000 under applied

$6,957 over applied

$6,720 over applied

$36,720 under applied

$30,000 over applied

$6,957 under applied

$36,720 over applied

$6,720 under applied

None of the answers provided are correct.

1b. A manufacturer purchased $165,000 of raw materials on account during the month of June. The beginning Raw Materials account balance was $32,000 and during June $171,000 of materials were requisitioned for production ($12,000 of which were not traceable to specific jobs). True or False: when recording the goods purchased, the company will debit indirect materials and credit accounts payable $12,000.

Group of answer choices

True

False

Budgeted Total Factory Overhead $1,050,000 Direct Materials ("DM") Requisitioned $625,000 Pounds of DM Requisitioned 25,000 Direct Labor Dollars $1,250,000 Direct Labor Hours 28,000 Machine Hours 35.000 Actual $1,080.000 $574,200 26,100 $1,242,000 27,600 36,500