1. Question Content Area

   A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $461,320 and direct labor hours would be 46,132. Actual factory overhead costs incurred were $480,490, and actual direct labor hours were 50,051. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

   a.$500,510 overapplied

   b.$39,190 underapplied

   c.$20,020 underapplied

   d.$20,020 overapplied