Question: During 2007, Kent Company applies overhead using a normal costing system at a rate of $12 per direct labor hours. Estimated direct labor hours for

During 2007, Kent Company applies overhead using a normal costing system at a rate of $12 per direct labor hours. Estimated direct labor hours for the year were 150,000, estimated overhead for the year was $1,800,000. Actual direct labor hours for 2007 were 140,000 and actual overhead was $1,700,000. What is the amount of under or over applied overhead for the year?
A $100,000 underapplied
B $20,000 underapplied
C $0
D

$120,000 underapplied

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