1a.

The Grant Company estimates for the 2014 accounting period that its overhead costs will amount to $525,000 and that it will work 75,000 direct labor hours. If actual overhead costs for the year amounted to $574,000 and actual labor hours amounted to 80,000, then overhead would be:

overapplied by $14,000.

overapplied by $49,000.

underapplied by $14,000.

underapplied by $49,000.