Assume (1) estimated total manufacturing overhead cost = $100,000, (2) estimated total amount of the allocation base = 20,000 direct labor hours, (3) the total direct labor hours actually worked during the period = 21,500, and (4) the total manufacturing overhead actually incurred during the period is $103,000. What is the total amount of underapplied or overapplied overhead for the period?

Multiple Choice

• $4,500 underapplied

• $4,500 overapplied

• $6,500 overapplied

• $6,500 underapplied