Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its directlabor costs to be $320,000

Question:

Mansfield estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to be $320,000 for 2007. The actual manufacturing labor costs were $80,000 for job 1, $120,000 for job 2 and $160,000 for job 3 during 2007. Manufacturing overhead is applied to jobs on the basis of direct labor costs using a predetermined overhead rate. The actual manufacturing overhead cost for the year was $172,000. The amount of the manufacturing overhead variance during 2007 was:
a. $ 8,000 Overapplied
b. $12,000 Overapplied
c. $12,000 Underapplied
d. $ 8,000 Underapplied

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...