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RevampScamp uses a job-order costing system. It has two manufacturing departments - Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during January.
RevampScamp uses a job-order costing system. It has two manufacturing departments - Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during January. The following information is available for January 2018: Fabrication Assembly Estimated Total Labor-Hours Used 20 15 Estimated Total Machine-Hours Used 30 50 Estimated Total Fixed Manufacturing Overhead $6,000 $7,000 Estimated Variable Manufacturing Overhead Per $20 per Labor-Hour Labor-Hour Estimated Variable Manufacturing Overhead Per $15 per Machine-Hour IMachine-Hour Job A Job B Direct Materials $22,500 $24,500 Direct Labor Cost $3,500 $6,000 Actual Labor-Hours Used Fabrication 9 13 Assembly 23 28 Machine-Hours Used Fabrication 13 18 8 Assembly 6 RevampScamp's actual manufacturing overhead for the month was $13,000. Using the accountant's plantwide predetermined overhead rate o $175 per labor-hour, was RevampScamp's manufacturing overhead overapplied or underapplied for the period and by how much? Multiple Choice $125 overapplied $225 underapplied $125 underapplied $225 overapplied
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