Kingston Manufacturing, a company specializing in custom orders, applies job-order costing. At the end of each year, Kingston Manufacturing adjusts its accounts by closing out any overapplied or underapplied overhead into the Cost of Goods Sold. The company has provided the following data for the recently concluded fiscal year: Initial estimate of total manufacturing overhead: $481,250 Estimated direct labor-hours at the start of the year: 35,000 hours Actual direct labor-hours worked during the year: 40,000 hours The breakdown of manufacturing overhead costs is as follows: Indirect labor cost: $179,000 Other incurred manufacturing overhead costs: $465,000 Determine if the manufacturing overhead for Kingston Manufacturing is overapplied or underapplied, and by how much.

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Kingston Manufacturing Overhead Variance Calculation Kingston Manufacturing uses a predetermined ove... View the full answer