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Augusta Company uses a job order costing system . They have the following cost data...

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Accounting

Augusta Company uses a job order costing system . They have the following cost data for XYZ Department :

Incurred By Job # 300 : Direct Materials : $1,000 Direct Labor : $7,000

Incurred By Job #301 : Direct Materials : $26,000 Direct Labor : $53,000

Incurred By Job #302 : Direct Materials : $12,000 Direct Labor $9,000

Incurred By Job #303 : Direct Materials : $4,000 Direct Labor : $1,000

Total Direct Material Cost : $43,000 Total Direct Labor Cost : $70,000

Actual Manufacturing Overhead Costs for the current year :

Indirect Materials : $15,000

Indirect Labor : $53,000

Employee Fringe Benefits : $23,000

Depreciation : $12,000

Supervision : $20,000

Total : $123,000

XYZ Department's predetermined overhead rate for the year is based on direct labor cost :

Budgeted Direct Labor Cost : $80,000

Budgeted Overhead : Variable : $98,000 Fixed : $38,000

What is the under-applied or over-applied overhead cost for XYZ Department for the year?

A) 4,000 overapplied B) 11,000 overapplied C) 4.000 underapplied D) 11,000 underapplied E) 5,000 overapplied

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