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Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhe
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Correct option is: B. Underapplied by $58,500
Workings:
Predetermined overhead rate = $363000 / 60500
= $            6.00
Applied overheads = 57250 hours X $6
= $   3,43,500
Actual overheads incurred = $   4,02,000
Under-applied overheads = $402000 - $343500
= $       58,500
Therefore, Under-applied overheads are $58500
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