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Furtado Incorporated makes a single producta cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to

Furtado Incorporated makes a single product—a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:


Total budgeted manufacturing overhead$ 191,940
Budgeted hours21,000labor-hours
Actual production (a)35,000units
Standard hours per unit (b)0.70labor-hours
Standard hours allowed for the actual production (a) × (b)24,500labor-hours
Total actual manufacturing overhead$ 190,874
Actual hours23,200labor-hours


The total manufacturing overhead is underapplied or overapplied by how much?

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