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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
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 $367,308 and direct labor hours would be 40,812. Actual factory overhead costs incurred were $439,214, and actual direct labor hours were 50,835. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?
a.$18,301 underapplied
b.$457,515 overapplied
c.$90,207 underapplied
d.$18,301 overapplied
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