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Tucker Company uses the job costing method. For 2016, the total estimated manufacturing cost was $250,000. The total actual manufacturing overhead was $275,000, and the total allocated overhead was $280,000. The impact on operating income of disposing of the over/under allocated manufacturing overhead cost is a ________.

Respuesta :

Answer:

$5,000 over applied

Explanation:

The computation of the disposing of the over/under allocated manufacturing overhead cost is presented below:

= Total actual manufacturing overhead cost - total allocated overhead cost

= $275,000 - $280,000

= $5,000 over applied

Since the total allocated overhead cost is more than the total actual manufacturing overhead cost so it would be over-applied overhead

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