2- A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $282,646 and direct labor hours would be 40,378. Actual factory overhead costs incurred were $358,062, and actual direct labor hours were 53,283. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

a.$14,919 underapplied

b.$90,335 underapplied

c.$14,919 overapplied

d.$372,981 overapplied

3 - Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as

a.factory overhead costs

b.product costs

c.conversion costs

d.period costs