Chapter 4: Homework ABC Company uses job-order costing and has assembled the following cost data for the production and assembly of item X: Direct manufacturing labor wages $35,000 Direct material used 70,000 Indirect manufacturing labor 4.000 Utilities 400 Fire insurance 500 Manufacturing overhead applied 11,000 Indirect materials 6,000 Depreciation on equipment 600 Based on the above cost data, calculate the manufacturing overhead for item X is stating whether it is underapplied or overapplied