Wembley Ltd uses a predetermined overhead rate based on direct labour-hours to apply manufacturing overhead to jobs. At the beginning of the year the company estimated its total manufacturing overhead cost at $300,000 and its direct labour-hours at 100,000 hours. The actual overhead cost incurred during the year was $350,000 and the actual direct labour-hours incurred on jobs during the year was 90,000 hours. The manufacturing overhead for the year would be:

Select one:

a.$80,000 underapplied

b.$80,000 overapplied

c.$50,000 underapplied

d.$50,000 overapplied