Is manufacturing overhead under-applied or over-applied
for the year? Please explain in a couple of
paragraphs.
Hoover Inc. uses a job-order costing system. The company's
inventory balances on February 1, the start of its fiscal year,
were as follows:
Raw Materials Inventory
$69,325
Work in Process Inventory
$55,100
Finished Goods Inventory
$81,256
During the year, the following transactions were completed:
Raw materials were purchased on account, $215,221.
Raw materials were issued from the storeroom for use in
production, $198,000 (70%...