1. Snappy Company uses a job- order cost system and assigns overhead cost to jobs on a basis of Direct labor hours. Manufacturing overhead cost and direct labor hours were estimated at a $100,000 and 40,000 hours, respectively, for 2014. In July 2014 job $334 was completed at a cost of $10,000 in direct materials and $6,000 in direct labor. The labor rate is $10 per hour. By the end of 2014, Snappy had worked a total of 41,000 direct labor hours and had increase $90,000 in actual manufacturing overhead cost

A. Calculate the total per unit cost of job #334 which contained 50 units.

B. Calculate Snappys under or over-applied overhead for 2014 and provide a specific explanation of why it happened.