SunriseCompany has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $100,000 and 40,000 hours, respectively, for the year.

By the end of the year, the companyhad worked a total of 45,000 direct labor-hours and had incurred $125,000actual manufacturing overhead cost.

The company'sPredetermined Overhead Rate (POHR) was:

• A. $2.50 per DLH
• B. $3.13 per DLH
• C. $2.78 per DLH
• D. $2.22 per DLH

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Question 14 of 313 Points

Sunrise Company

NOTE: This problem has 3 parts for a total of 9points. (Part 2of 3)

Based on SunriseCompany's financial data,

The company'smanufacturing overhead for the year was:

• A. $12,500 underapplied
• B. $2,250 overapplied
• C. $10,250 underapplied
• D. $12,500 overapplied

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Question 15 of 313 Points

Sunrise Company

Using the data provided for SunriseCompanyin the previous question,

For the multiple-choice question, after calculating theCompany's manufacturing overhead ending balance in the previous problem, which of the following statements is correct?

• A. If Manufacturing Overhead is overapplied, when closing the ending balance in the manufacturing overhead account to COGS, the COGS account should be increased, which decreases Net Income.
• B. If Manufacturing Overhead is overapplied, when closing the ending balance in the manufacturing overhead account to COGS, the Applied side of the MOH account should be increased.
• C. If Manufacturing Overhead is underapplied, when closing the ending balance in the manufacturing overhead account to COGS, the COGS account should be decreased, which increases Net Income.
• D. If Manufacturing Overhead is underapplied, after closing the ending balance in the manufacturing overhead account to COGS, the COGS is increased, which decreases Net Income.