What is sensual under-or overapplied manufacturing overhead

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Sensual Scents, Inc. uses job-order cost system with machine hours as the overhead base. At the beginning of last year, Sensual estimated 38,000 machine hours were logged but P153, 500 of overhead cost was incurred.

Problem 1: What is sensual' under-or overapplied manufacturing overhead?

a. P 1,500 underapplied
b. P1,500 overapplied
c. P2,000 underappld
d. P3,500 underapplied

Reference no: EM132769989

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