Brown Manufacturing Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Last year, the company worked 55,000 actual direct labour hours and incurred $335,000 of actual manufacturing overhead cost. The Company had estimated that it would work 57000 direct labour houts during the year and incur $342,000 of manufacturing overhead cost. The company's manufacturing overhead for the year was: Multiple Choice Overapplied by $7000 underapplied by $5.000 underopplied by $7000 overapplied by 55.000