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Estimated manufacturing overhead for the year $ 80,000 Estimated direct labor hours for the year 4,000 Two jobs were worked on during the year: Job

Estimated manufacturing overhead for the year $ 80,000
Estimated direct labor hours for the year 4,000

Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 2,200 and 2,000, respectively. The actual manufacturing overhead was $89,800.

What is the amount of the under- or overapplied manufacturing overhead? Overhead is applied on the basis of direct labor hours.

$3,800 overapplied.

$1,800 underapplied.

$9,800 overapplied.

$5,800 underapplied.

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