4) The company's net income is understated by $6,000 for the year. Question 47 (1 point) During the year, Paul Company used a predetermined overhead rate of $3.50 per direct labour hour, based on an estimate of 22,000 direct labour hours to be worked during the year. Actual overhead cost and activity during the year were: Actual manufacturing overhead $90,000 cost incurred Actual direct labour hours 25,000 worked ok Pro During the year, Paul Company used a predetermined overhead rate of $3.50 per direct labour hour, based on an estimate of 22,000 direct labour hours to be worked during the year. Actual overhead cost and activity during the year were: Actual manufacturing overhead $90,000 cost incurred Actual direct labour hours 25,000 worked What was the under- or overapplied overhead for the year? 1) $2,500 underapplied. 2) $2,500 overapplied. 3) $13,000 underapplied. 4) $10,500 overapplied