Caple Corporation Applies Manufacturing Overhead on the Basis of Machine-Hours

Multiple Choice

Caple Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $16,660. Actual manufacturing overhead for the year amounted to $25,000 and actual machine-hours were 1,460. The company's predetermined overhead rate for the year was $11.90 per machine-hour.
-The overhead for the year was:

A) $714 overapplied
B) $7,626 underapplied
C) $714 underapplied
D) $7,626 overapplied