Use the following to answer questions 6 & 7:

Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to be $320,000 for 2007. The actual manufacturing labor costs were $80,000 for job 1, $120,000 for job 2 and $160,000 for job 3 during 2007. Manufacturing overhead is applied to jobs on the basis of direct labor costs using a predetermined overhead rate. The actual manufacturing overhead cost for the year was $172,000.

6.The amount of overhead assigned to Job 3 during 2007 was:

a.$80,000

b.$320,000

c.$160,000

d.$71,110

7.The amount of the manufacturing overhead variance during 2007 was:

a.$8,000 Overapplied

b.$12,000 Overapplied

c.12,000 Underapplied

d.$8,000 Underapplied