Freeman Company uses a predetermined overhead rate based ondirect labor-hours to apply manufacturing overhead to jobs. At thebeginning of the year, the company estimated manufacturing overheadwould be $150,000 and direct labor-hours would be 10,000. Theactual figures for the year were $186,000 for manufacturingoverhead and 12,000 direct labor-hours. The cost records for theyear will show:

A. Overapplied overhead of$30,000

B. B. underapplied overhead of$30,000

C. Underapplied overhead of$6,000

D. Overapplied overhead of$6,000

Pleas show the steps in solving this problem.