Yista Corporation Uses a Predetermined Overhead Rate Based on Direct

Multiple Choice

Yista Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.The company estimated manufacturing overhead at $510,000 for the year and direct labor-hours at 100,000 hours.Actual manufacturing overhead costs incurred during the year totaled $540,000.Actual direct labor-hours were 105,000.What was the overapplied or underapplied overhead for the year?

A) $30,000 overapplied
B) $30,000 underapplied
C) $4,500 overapplied
D) $4,500 underapplied