Carter Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 5,660. The company's predetermined overhead rate for the year was $24.70 per machine-hour.
The overhead for the year was?
a) $5,198 Overapplied
b) $3,952 Underapplied
c) $3,952 Overapplied
d) $5,198 Underapplied