Dagostino Corporation Uses a Job-Order Costing System

Multiple Choice

Dagostino Corporation uses a job-order costing system.The following data relate to the just completed month's operations.(1) Direct materials requisitioned for use in production, $154,000(2) Indirect materials requisitioned for use in production, $45,000(3) Direct labor wages incurred, $94,000(4) Indirect labor wages incurred, $119,000(5) Depreciation recorded on factory equipment, $44,000(6) Additional manufacturing overhead costs incurred, $83,000(7) Manufacturing overhead costs applied to jobs, $236,000(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $458,000Use the following T-accounts to answer the following question. The manufacturing overhead was:

A) $10,000 Underapplied
B) $10,000 Overapplied
C) $55,000 Underapplied
D) $55,000 Overapplied