Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to be $320,000 for 2019. The actual manufacturing labor costs were $80,000 for job 1, $120,000 for job 2 and $160,000 for job 3 during 2019. Manufacturing overhead is applied to jobs on the basis of direct labor costs using a predetermined overhead rate. The actual manufacturing overhead cost for the year was $172,000.

The amount of the manufacturing overhead variance during 2019 was:

a.$8,000 Overapplied

b.$12,000 Overapplied

c.12,000 Underapplied

d.$8,000 Underapplied