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During the current year, Esterhazy, Inc. estimated manufacturing overhead for the year to be $896,000....

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Accounting

During the current year, Esterhazy, Inc. estimated manufacturing overhead for the year to be $896,000. The company uses direct labor hours to apply manufacturing overhead to Work-in-Process. The budgeted direct labor hours for the current year totaled 80,000 hours and the actual hours worked were 82,000. The actual overhead incurred during the year was $924,000. What is the amount of overapplied or underapplied overhead?

$5,600 overapplied

$5,600 underapplied

$28,000 overapplied

$28,000 underapplied

None of these.

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