Answer (C) is correct . The overhead control account would have been debited for $132,000 of actual overhead. Credits would have totaled $140,000 representing 70% of direct labor costs of $200,000. Hence, the $140,000 credit exceeds the $132,000 debit. Overhead was overapplied by $8,000.
Answer (A) is incorrect because An overapplication of overhead is represented by a credit in the overhead control account.
Answer (B) is incorrect because The overhead was overapplied for the month.
Answer (D) is incorrect because The overhead was overapplied for the month.
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Madtack Company’s net charge to overhead control for the month of November is
