Harrell Company Uses a Predetermined Overhead Rate Based on Direct

Harrell Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated its total manufacturing overhead cost at $400,000 and its direct labour-hours at 100,000 hours. The actual overhead cost incurred during the year was $350,000 and the actual direct labour hours incurred on jobs during the year was 90,000 hours. The manufacturing overhead for the year would be?

A) $50,000 overapplied.
B) $50,000 underapplied.
C) $10,000 overapplied.
D) $10,000 underapplied.