QUESTION 3 Malcolm Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. $17,000 13,600 On September 1, the estimates for the month were: Manufacturing overhead ....... Direct labor-hours ..................................... During September, the actual results were: Manufacturing overhead .... Direct labor-hours ....... $18,500 12,000 The cost records for September will show: Overapplied overhead of $1,500 Underapplied overhead of $1,500 Overapplied overhead of $3,500 Underapplied overhead of $3,500