Biology Forums - Study Force

SES Manufacturing has finished production activities for the year. The company allocates manufacturing overhead based on a percentage of direct labor costs. The company has provided the following information:

Total manufacturing overhead costs estimated at the beginning of the year   $147,000
Total direct labor costs estimated at the beginning of the year   $350,000
Total direct labor hours estimated at the beginning of the year   12,000 direct labor hours
Actual manufacturing overhead costs for the year   $159,400
Actual direct labor costs for the year   $362,000
Actual direct labor hours for the year   12,400 direct labor hours

Based on the above data, calculate the unadjusted ending balance in the Manufacturing Overhead account.
A) $5,040 credit balance
B) $7,360 debit balance
C) $7,360 credit balance
D) $5,040 debit balance

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