Snappy Company has a job-order cost system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor-hours were estimated at $100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $5,000 in direct materials and $2,400 in direct labor. The labor rate is $6 per hour. By the end of the year, Snappy had worked a total of 45,000 direct labor-hours and had incurred $110,250 actual manufacturing overhead cost.

If Job #334 contained 200 units, the unit cost on the completed job cost sheet would be:

$37.00.

$42.00.

$41.90.

$39.50.

Snappy's manufacturing overhead for the year was:

		$10,250 underapplied.
		$12,500 overapplied.
		$12,500 underapplied.
		$2,250 overapplied.