Required information [The following information applies to the questions displayed below.) Creative Lighting Inc. makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the company's fiscal year. $110.880 of manufacturing overhead was applied to Work in Process Inventory using the predetermined overhead application rate of $12 per direct labor hour. Required: a. Calculate the number of hours of direct labor used during June. Direct labor hours b. Actual manufacturing overhead costs incurred during June totaled $106,680. Calculate the amount of over or underapplied overhead for June Actual overhead incurred Overhead applied c. Identify two possible explanations for the over- or underapplied overhead. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Actual costs were less than anticipated More hours were worked Additional variable costs Additional foxed costs Allocated costs less than anticipated