Your Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated its predetermined overhead rate to be $4 per direct labor hour since it estimated total manufacturing overhead cost at $4000,000 and direct labor-hours at 90,000 hours. The actual overhead cost incurred during the year was $370,000 and the actual direct labor-hours incurred on jobs during the year was 100,000 hours. What is the difference between the applied manufacturing overhead and the actual manufacturing overhead?

Group of answer choices

a. $10,000 underapplied

b. $10,000 overapplied

c. $30,000 underapplied

d. $30,000 overapplied

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