Manufacturing Overhead applied (based on DLH) was $60,000, while actual

overhead incurred was $62,000. Which of the following is

always

true of this

situation and why?

A. Overhead was overapplied by $2,000

B. Overhead was underapplied by $2,000

C. Direct labor hours were overestimated

D. Direct labor hours were underestimated.

E. Both A and C

F. Both A and D

G. Both B and C

H. Both B and D