COTB MC Qu. 3-61 (Algo) Assume the following:

Assume the following:

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 = 23,000
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

$12,000 overapplied

$12,000 underapplied

$14,000 underapplied

$14,000 overapplied