Manufacturing overhead was estimated to be $351,750 for the year along with 20,100 direct labor hour

Manufacturing overhead was estimated to be $351,750 for the year along with 20,100 direct labor hour

Manufacturing overhead was estimated to be $351,750 for the year along with 20,100 direct labor hours. Actual manufacturing overhead was $312,600, and actual direct labor hours were 18,800. Which of the following would be correct?

Multiple Choice:

Overhead is underapplied by $12,000.

Overhead is overapplied by $16,400.

Overhead is underapplied by $16,400.

Overhead is overapplied by $12,000.

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