Estmiated manufacturing overhead for the year $30,000

Estimated direct labor hours for the year 2,000

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 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000. What is the amount of the under- or overapplied manufacturing overhead?

	$4,000 underapplied
	$7,000 overapplied
	$1,000 underapplied
	$3,000 overapplied