Question 4-5 are based on the following: ABC company incurred $31,000 in manufacturing overhead and applied $33,000 to jobs during 2016. Budgeted manufacturing overhead costs at the beginning of the year was $30,500. The company uses the most common and simple method of handling differences between actual and applied overhead.

4. During 2016, the companya. Overapplied overhead costs by $2,000b. Underapplied overhead costs by $2,000c. Overapplied overhead costs by $2,500d. Underapplied overhead costs by $2,500

5. To adjust for the over- or under-application of overhead costs, ABC willa. Debit WIP, credit COGS, and credit MOH allocatedb. Debit MOH Allocated, credit COGS, and credit MOH controlc. Debit MOH Control, credit COGS, and credit MOH Allocatedd. Debit MOH Allocated, debit COGS, and credit MOH control