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 $360,000 and direct labor hours

would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor

hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at

the end of the year?

a. $6,000 overapplied

b. $6,000 underapplied

c. $54,800 overapplied

d. $54,800 underapplied