Yista Corporation Uses a Predetermined Overhead Rate Based on Direct

Yista Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $510,000 for the year and direct labor-hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totaled $540,000. Actual direct labor-hours were 105,000. What was the overapplied or underapplied manufacturing overhead for the year?

A) $30,000 overapplied
B) $30,000 underapplied
C) $4,500 overapplied
D) $4,500 underapplied