Data regarding Lager Ltd.s production for the year is given below:

Per unit information:

	Direct labour	$13
	Direct material	9
	Applied manufacturing overhead	9
Unit production (budget)		30343
Unit production (actual)		23063
Actual overhead costs incurred		$134892

Lager Ltd.s manufacturing overhead for the year was:

Select one:

a. Over-applied by $138195

b. Over-applied by $72675

c. Under-applied by $72675

d. Under-applied by $138195