Freeman Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $200,100 and direct labour hours would be 16,000. The actual figures for the year were $196,000 for manufacturing overhead and 20,000 direct labour hours.

The cost records for the year will show which of the following?

A. Underapplied Overhead of $30,000

B. Underapplied Overhead of $54,200

C. Overapplied Overhead of $54,200

D. Overapplied Overhead of $6,000