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Applied vs. Actual Manufacturing Overhead Davis Manufacturing Corporation applies manufacturing overhead on the basis of 150% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $315,000 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $40,000, $20,000. and $140,000, respectively, of direct labor incurred during the current year. a. Determine the underapplied manufacturing overhead at year-end (assume it is significant)