1. The Love Corporation applies overhead to work in process based on direct labor hours. Love estimates manufacturing overhead for the following period to be $600,000 and labor hours to total 30,000. If actual manufacturing overhead is $620,000 and actual labor hours total 30,600, manufacturing overhead is:
   1. $8,000 underapplied.
   2. $12,000 overapplied.
   3. $12,156 underapplied.
   4. $20,000 overapplied.

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