Zyx 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 manufacturing overhead would be $150,000 and direct labour-hours would be 10,000. The actual figures for the year were $186,000 for manufacturing overhead and 13,000 direct labour-hours. The cost records for the year will show:

Select one:

a. overapplied overhead of $36,000

b. underapplied overhead of $36,000

c. underapplied overhead of $9,000

d. overapplied overhead of $9,000

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