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Question - Budgeted direct labour cost: 75 000 hours @ $20 per hour; Actual direct labour cost: 70 000 hours @ $22 per hour; Budgeted manufacturing overhead: $980,000; Actual manufacturing overhead: $950,000. Calculate the overapplied or underapplied overhead for the year.
a. $38,000
b. $30,000
c. $33,000
d. None of the answers given
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