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You are examining the application of overhead for the month of July and preparing to close the MOH account. According to the company data, manufacturing overhead has been debited $125,000 and the credits total $130,000. Which of the following is true? a. The manufacturing overhead applied to Work in Process was $125,000 b. Manufacturing overhead was over applied by $5,000 c. The actual overhead for the company was $130,000 d. Manufacturing overhead was under applied by $5,000 oed for the company was $13000
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The answer is b - Manufacturing overhead was over-applied by $5,000 Manufacturing overhead incurred-) Debited to “Manufacturing overhead account-$125,000 Manufacturing overhead applied >Credited to Manufacturing overhead account $130,000 T - Account Manufacturing overhead $125,000 $130,000 Balance$5,000 Since manufacturing overhead applied ($130,000) is more than the manufacturing overhead incurred (S125,000), the overhead is said to be over-applied by $5,000.

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