During its most recent period, Raymond Manufacturing expected a job to cost $600,000 of overhead, $1,000,000 of materials, and $400,000 in labor. Raymond applies overhead based on direct labor cost. Actual production required an overhead cost of $590,000, materials of $1,140,000 were used, and $440,000 in labor. Is overhead over- or underapplied and by how much? *

1 point

$70,000 overapplied

$70,000 underapplied

$10,000 overapplied

$10,000 underapplied