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Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of...

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Accounting

Bakker 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 $85,250 and 3,100 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $83,550 and actual direct labor-hours were 3,000.

The overhead for the year was:

$79,750 overapplied

$1,050 underapplied

$1,050 overapplied

$79,750 underapplied

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