Baka Corporation Applies Manufacturing Overhead on the Basis of Direct

Multiple Choice

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $241,800 and 6,800 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $243,400 and actual direct labor-hours were 5,300.The overhead for the year was: (Round your intermediate calculations to 2 decimal places.)

A) $53,332 underapplied
B) $54,932 underapplied
C) $53,332 overapplied
D) $54,932 overapplied