The following costs were recorded by Larson Co. for the month of March:

Direct Materials: $4,000

Direct Labor (100 hrs @ $12hr.): $1,200

Indirect Labor: $200

Indirect Materials: $50

Depreciation on factory equipment: $300

Factory Utilities: $250

Rent on office building: $1,000

Factory supplies: $100

Office supplies: $35

QUESTION: Larson Cos Overhead is allocated based on a predetermined rate of $10 per direct labor hour. Comparing Larson Cos Applied and Actual Manufacturing Overhead in March, Manufacturing Overhead is:

Group of answer choices

A.)Overapplied by $100

B.)Underapplied by $100

C.)Overapplied by $135

D.)Overapplied by $65

E.)None of these statements is true.