How much is over- or underapplied overhead at year end

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Question - Crane Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year as follows:

Actual manufacturing overhead $165000

Estimated manufacturing overhead $156400

Direct labor incurred 2200 hours @ $20 = $44000

Direct labor estimated 2300 hours @ $19 = $43700

Required - How much is over- or underapplied overhead at year end?

A. $7500 underapplied.

B. $6800 underapplied.

C. $8600 overapplied.

D. $15400 underapplied.

Reference no: EM133098673

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