A Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.

Last year, the Corporation worked 47,000 actual direct labor-hours and incurred $810,000 of actual manufacturing overhead cost.

The Corporation had estimated that it would work 45,000 direct labor-hours during the year and incur $765,000 of manufacturing overhead cost.

What was the Corporation's overapplied or underapplied manufacturing overhead cost for the year?

Group of choices..

overapplied by $34,000

underapplied by $34,000

overapplied by $11,000 (Not correct)

underapplied by $11,000