The following annual amounts pertain to the Wolf Company:

Estimated Overhead Costs $101,988

Estimated Direct Labor hours 67,992

If actual overhead costs for the year amounted to $106,000 and actual direct labor worked amounted to 70,000 hours, then overhead would be

Multiple Choice

• overapplied by $1,000.
• underapplied by $1,000.
• overapplied by $1,012.
• underapplied by $1,012.