Estimated manufacturing overhead cost at the beginning of the year: $100,000

Estimated direct labor hours at the beginning of the year: 10,000

Actual manufacturing overhead cost incurred during the year: $118,000

Actual direct labor hours worked during the year: 11,000

Based on the above information, the cost record of the company will show:

Select one:

a. the underapplied overhead of $18,000

b. underapplied overhead of $8,000

c. the overapplied overhead of $8,000

d. the overapplied overhead of $18,000 When refining a costing system, a company should classify as many costs as possible as direct costs.

Select one:

True

False