Tiffany charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labor hours. The following data pertain to the current year: Budgeted manufacturing overhead: $ 1,800,000 Actual manufacturing overhead: $ 1,810,000 Budgeted labor hours: 60,000 Actual labor hours: 61,500 Which of the following choices is the correct status of manufacturing overhead at year-end? Overapplied by $10,000. Underapplied by $10,000. Overapplied by $35,000. Underapplied by $35,000. Overapplied by $45,000.

Tiffany charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labor hours. The following data pertain to the current year:
 Budgeted manufacturing overhead: $ 1,800,000
 Actual manufacturing overhead: $ 1,810,000
 Budgeted labor hours: 60,000
 Actual labor hours: 61,500
 

Which of the following choices is the correct status of manufacturing overhead at year-end?
 
Overapplied by $10,000.
 
Underapplied by $10,000.
 
Overapplied by $35,000.
 
Underapplied by $35,000.
 
Overapplied by $45,000.
                                        


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