1. 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 $412,695 and direct labor hours would be 45,855. Actual factory overhead costs incurred were $434,557, and actual direct labor hours were 50,296. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

   a.$18,107 underapplied

   b.$18,107 overapplied

   c.$452,664 overapplied

   d.$39,969 underapplied