Harrell 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 its total manufacturing overhead cost at $$300,000$ and its direct labour hours at $100,000$ hours. The actual overhead cost incurred during the year was $$340,000$ and the actual direct labour hours incurred on jobs during the year was $70,000$ hours. What would be the manufacturing overhead for the year?

Question $7$Answer

a$.$

$$210,000$ overapplied

b$.$

$$210,000$ underapplied

c$.$

$$130,000$ underapplied

d$.$

$$130,000$ overapplied