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Malcolm Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The estimates for the year were: Manufacturing

Malcolm Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs.

The estimates for the year were:
Manufacturing overhead $16,240
Direct labor hours 11,600
The actual results for the year were:
Manufacturing overhead $21,700
Direct labor hours 13,000

The cost records for the year will show

A.Overapplied overhead of $5,460.

B.Underapplied overhead of $5,460

C.Overapplied overhead of $3,500.

D.Underapplied overhead of $3,500

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