Crich Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

Multiple Choice

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: (Do not round your intermediate calculations.)

A) $6,840 overapplied
B) $6,840 underapplied
C) $1,840 underapplied
D) $1,840 overapplied