Furtado 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 labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted manufacturing overhead$191,940 Budgeted hours 21,000labor-hours Actual production (a) 35,000unitsStandard hours per unit (b) 0.70labor-hoursStandard hours allowed for the actual production (a) × (b) 24,500labor-hours Total actual manufacturing overhead$190,874 Actual hours 23,200labor-hoursThe total manufacturing overhead is underapplied or overapplied by how much? (Round your intermediate calculations to 2 decimal places.)
A. $1,066 Overapplied
B. $1,066 Underapplied
C. $33,056 Overapplied
D. $33,056 Underapplied
Answer: C
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