Forbes Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the company estimated manufacturing overhead would be $18,000 and direct labor-hours would be 15,000. The actual figures were $19,500 for manufacturing overhead and 16,000 direct labor-hours. The cost records for the period will show:
a) overapplied overhead of $300
b) overapplied overhead of $1,500
c) underapplied overhead of $1,500
d) underapplied overhead of $300