Kisler Incorporated makes a single product-a cooling coil used in commercial refrigerators. 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$70,035 Budgeted production (a) 15,000unitsStandard hours per unit (b) 0.70machine-hoursBudgeted hours (a) × (b) 10,500machine-hours Actual production (a) 14,000unitsStandard hours per unit (b) 0.70machine-hoursStandard hours allowed for the actual production (a) × (b) 9,800machine-hoursTotal actual manufacturing overhead$97,489 The total manufacturing overhead is underapplied or overapplied by how much? (Round your
intermediate calculations to 2 decimal places.)
A. $27,454 Underapplied
B. $32,123 Overapplied
C. $27,454 Overapplied
D. $32,123 Underapplied
Answer: D
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