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Question(s) / Instruction(s):

Baken Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $172,140 and 3,800 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $171,000 and actual direct labor-hours were 3,880.

The overhead for the year was:

A.            $4,764 over applied

B.            $3,624 under applied

C.            $3,624 over applied

D.            $4,764 under applied

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