Cobden Manufacturing Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Last year, Cobden worked 57,000 actual direct labour hours and incurred $345,000 of actual manufacturing overhead cost. Cobden had initially estimated that it would work 55,000 direct labour hours during the year and incur $330,000 of manufacturing overhead cost.
What was Cobden Manufacturing Company's manufacturing overhead cost for the year?
A. $3,000 overapplied.
B. $3,000 underapplied.
C. $15,000 overapplied.
D. $15,000 underapplied.
E. None of the answers are correct.