Sai Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The following data were extracted from the company's accounting records for Year 6

Estimated Actual Manufacturing overhead costs $60,000 $66,000 Direct labour hours 20,000 hours 26,500 hours

Job #461 was completed during the year and the following costs had been incurred on that job:

Direct materials: $5,000 Direct labour: $1,500 (at $5.00 per direct labour hour)

How much of any underapplied or overapplied overhead would have been due to the fact that the estimated overhead allocation base was different from the actual?

Multiple Choice

1) $14,000

2) $19,500

3) $6,000

4) $4,000