Dukes Company used a predetermined overhead rate this year of $2 per direct labor hour, based on an estimate of 20,000 direct labor hours to be worked during the year. Actual costs and activity during the year were:
|
Actual manufacturing overhead cost incurred |
$38,000 |
|
Actual direct labor hours worked |
18,500 |
The under- or overapplied overhead for the year was:
A) $1,000 underapplied
B) $1,000 overapplied
C) $3,000 underapplied
D) $3,000 overapplied