ABC Company estimates the following at the beginning of the year:

Estimated direct labor hours 25,000 hours

Estimated fixed manufacturing overhead $40,000

Estimated variable manufacturing overhead per direct labor hour $3

During 20x4 ABC Company actually incurred $100,000 in manufacturing overhead, and used 22,000 in direct labor hours. Calculate the amount of overapplied or underapplied manufacturing overhead for the period.

a.) 13,800 overapplied

b.) 1,200 overapplied

c.) 1,200 underapplied

d.) 13,800 underapplied