Fesler Corporation uses machine-hours as the allocation base for applying its manufacturing overhead. Estimated manufacturing overhead cost for the year $581,400 Actual manufacturing overhead cost for the year $589,000 Estimated machine hours for the year #114,000 Actual machine hours used for the year # 83,100 All of the company's manufacturing overhead is fixed.

If the predetermined overhead rate is based on capacity, manufacturing overhead for the year was overapplied or underapplied as follows:

		Manufacturing overhead underapplied $115,330
		Manufacturing overhead underapplied $165,190
		Manufacturing overhead overapplied $165,190
		Manufacturing overhead overapplied $115,330