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Checker Inc. produces automobile bumpers. Overhead is applied on the basis of machine hours required for cutting and fabricating. A predetermined overhead application rate of

Checker Inc. produces automobile bumpers. Overhead is applied on the basis of machine hours required for cutting and fabricating. A predetermined overhead application rate of $18.50 per machine hour was established for 2013. If actual overhead incurred during 2013 totaled $229,400 and 12,200 machine hours were used during 2013, what would be the amount of over- or underapplied overhead for 2013?

A. $3,700 underapplied

B. None of the other answers

C. $229,400 underapplied

D. $225,700 overapplied

E. $455,100 overapplied

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