By what amount was the manufacturing overhead

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Question - SixthZ had the following information for November:

Estimated total manufacturing overhead cost for year $375,000

Estimated total direct labor hours for the year (@ $25/hr) 3,000 direct labor hours

Actual manufacturing overhead for November $70,000

Actual direct labor cost for November $12,000

SixthZ uses direct labor cost to apply its overhead. By what amount was the manufacturing overhead over- or under-applied for November?

a. $58,000 underapplied

b. $58,000 overapplied

c. $10,000 underapplied

d. $10,000 overapplied

Reference no: EM133099840

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