el camino company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours. The company decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs were 4780. If the actual factory overhead totaled $141,800, determine the over- or underapplied amount for the month.

A step by step process would be much appreciated :)

Answer Options:

$35,220 overapplied

$7,575 overapplied

$35220 underapplied

$7,575 underapplied