Weyers Incorporated makes a single product-a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted manufacturing overhead$258,300 Budgeted production (a) 25,000unitsStandard hours per unit (b) 1.40machine-hoursBudgeted hours (a) × (b) 35,000machine-hours Actual production (a) 27,000unitsStandard hours per unit (b) 1.40machine-hoursStandard hours allowed for the actual production (a) × (b) 37,800machine-hoursTotal actual manufacturing overhead$268,256 The total manufacturing overhead is underapplied or overapplied by how much? (Round your
intermediate calculations to 2 decimal places.)
A. $9,956 Underapplied
B. $9,956 Overapplied
C. $10,708 Overapplied
D. $10,708 Underapplied
Answer: C
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