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 $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600.
-The overhead for the year was:

A) $5,100 underapplied
B) $7,400 underapplied
C) $5,100 overapplied
D) $7,400 overapplied