Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,500 actual direct labor-hours and incurred $412,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 60,600 direct labor-hours during the year and incur $369,660 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

Multiple Choice

overapplied by $61,250

underapplied by $61,250

overapplied by $42,340

underapplied by $42,340