Question:
Caber Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company"s predetermined overhead rate for the year was $10.10 per machine-hour. The overhead for the year was:
A) $1,010 underapplied
B) $590 overapplied
C) $590 underapplied
D) $1,010 overapplied