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A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $231,720 and direct labor hours would be 46,344. Actual factory overhead costs incurred were $248,083, and actual direct labor hours were 51,684. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?
a. $10,337 underapplied
b. $26,700 underapplied
c. S10,337 overapplied
d. S258,420 overapplied
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