Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to be $320,000 for 2007. The actual manufacturing labor costs were $80,000 for job 1, $120,000 for job 2 and $160,000 for job 3 during 2007. Manufacturing overhead is applied to jobs on the basis of direct labor costs using a predetermined overhead rate. The actual manufacturing overhead cost for the year was $172,000.
-The amount of the manufacturing overhead variance during 2007 was:

A) $ 8,000 Overapplied
B) $12,000 Overapplied
C) 12,000 Underapplied
D) $ 8,000 Underapplied