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THE Company applies overhead costs to jobs using direct labor cost as an activity. For the current year, THE Company reported estimated overhead cost of

THE Company applies overhead costs to jobs using direct labor cost as an activity. For the current year, THE Company reported estimated overhead cost of $500,000 while the actual overhead cost totaled $510,000. THE's estimated direct labor cost was $200,000 while the actual direct labor cost was $220,000. For the current year, overhead was:

Group of answer choices

under-applied by $10,000

under-applied by $20,000

under-applied by $30,000

under-applied by $40,000

over-applied by $10,000

over-applied by $20,000

over-applied by $30,000

over-applied by $40,000

none of the above choices are correct

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