Question

1. A Company ander costing and has cost data for the Son of DM Used $70,000 rect Labor $4,000 Utilities $400 Fire Insurance 5500 MOH Applied $11,000 Indirect Materials $6,000 Depreciation on Equip. 5600 The MOH for Item X is 5500 overallocated 5600 underlocated c5500 under allocated 5600 located Submit Pulls Leave 405 PM 9/16/202 Presen Home End PgUp % Poon 5 6 8 9 T Y Р H Н. J К. B. N

Answer 1

MOH applied = $11,000

Indirect labor = $4,000

Utilities = $400

Fire insurance = $500

Indirect materials = $6,000

Depreciation on equipment = $600

Actual MOH = Indirect labor + Utilities + Fire insurance + Indirect materials + Depreciation on equipment

= 4,000 + 400 + 500 + 6,000 + 600

= $11,500

Underallocated MOH = Actual MOH - MOH applied

= 11,500 - 11,000

= $500

Correct option is (c)

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