Collins Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information applies to the Corporation for the current year:
| Direct labor-hours: |
|
| Estimated for the year |
24,000 |
| Actual hours worked |
19,500 |
| Direct labor cost: |
|
| Estimated for the year |
$300,000 |
| Actual cost incurred |
$210,000 |
| Manufacturing overhead: |
|
| Estimated for the year |
$240,000 |
| Actual cost incurred |
$185,000 |
The manufacturing overhead cost for the current year will be:
$17,000 overapplied $17,000 underapplied $55,000 overapplied $55,000 underapplied