Reade Incorporated Makes a Single Product--An Electrical Motor Used in Many

Multiple Choice

Reade Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
The total manufacturing overhead is underapplied or overapplied by how much?

A) $61,347 Underapplied
B) $32,395 Underapplied
C) $61,347 Overapplied
D) $32,395 Overapplied