Bayest Manufacturing Corporation Uses a Predetermined Overhead Rate Based on Direct

Multiple Choice

Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 58,250 actual direct labor-hours and incurred $442,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 60,900 direct labor-hours during the year and incur $389,760 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

A) overapplied by $69,200
B) underapplied by $69,200
C) overapplied by $52,240
D) underapplied by $52,240