Question

Sutherland Company listed the following data for 2016:
Budgeted factory

overhead$2,100,000Budgeted direct labor hours89,000Budgeted machine hours51,000Actual factory overhead2,201,000Actual direct labor hours83,700Actual machine hours48,900Round calculations to two significant digits 

If overhead is applied based on machine hours, the overapplied/underapplied overhead is:

$187,298 underapplied.

$187,298 overapplied.

$176,358 underapplied.

$176,358 overapplied.

$-0-.

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