Tiffany charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labor hours. The following data pertain to the current year:

Budgeted manufacturing overhead: $ 2,100,000

Actual manufacturing overhead: $ 2,119,000

Budgeted labor hours: 105,000

Actual labor hours: 106,600

Which of the following choices is the correct status of manufacturing overhead at year-end?

rev: 11_13_2014_QC_59180

a) Overapplied by $19,000.

b) Underapplied by $19,000.

c) Overapplied by $13,000.

d) Underapplied by $13,000.

e) Overapplied by $32,000.