in December, 2016, Sutton estimated overhead costs for 2017 to be $800,000. Sutton applies overhead using direct labor cost. Actual overhead during 2017 was $750,000, and applied overhead during 2017 was $790,000. Which of the following must be CORRECT?

a. Overhead was overapplied by $10,000.

b. Overhead was underapplied by $10,000.

c. Overhead was underapplied by $50,000.

d. Actual Direct Labor cost was less than the estimated Direct Labor cost for the year of 2017.

e. Overhead was overapplied by $50,000.