Manufacturing Overhead - over/underapplied Creative Lighting, Inc., makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the company's fiscal year, $56,520 of manufacturing overhead application rate of $6 per direct labor hour.

Required:

A. Calculate the number of hours of direct labor used during June.

B. Actual manufacturing overhead costs incurred during June totaled $49,340. Calculate the amount of over or underapplied overhead for June.

C. Identify two possible explanations for the over or underapplied overhead