ses products by using a predeter application rate, computed on the basis of labor hours. The following data pertain to the current year: Budgeted manufacturing overhead: $1,800,000 Actual manufacturing overhead: $1,810,000 Budgeted labor hours: 60,000 Actual labor hours: 61,500 Which of the following choices denotes the correct status of manufacturing overhead at year-end? 1) Overapplied by $10,000. 2) Underapplied by $10,000. 3) Overapplied by $35,000. 4) Underapplied by $35,000