Mesa Manufacturing Co. manufactures tables and has two production departments: cutting and assembly. The company uses a normal costing system, and each department applies overhead based on a different cost driver.

The following information was taken from the latest accounting period.

Department cost driver

Estimated activity level

Estimated number of activity units per table

Estimated manufacturing overhead

Actual cost

Actual activity level

Actual tables manufactured

Cutting

Machine hours

5,000

2

$350,000

$375,000

4,200

2,400

Assembly

Direct labour hours

10,000

4

$190,000

$180,000

11,000

2,400

Which of the following statements regarding overhead costs is true?

a) Total overhead is overapplied by $52,000.

b) The actual cost per table is lower than the estimated cost.

c) The cutting department overhead is underapplied by $81,000.

d) The estimated cost per table is $225.