At the end of the year, Rollin Company had applied a total of $800,000 to its manufactured products, however its actual overhead incurred during the year amounted to $825,000. Rollin has:
Question 6 options:
1)
underapplied it manufacturing overhead to its products by $25,000
2)
overapplied its manufacturing overhead to its products by $25,000
3)
used an inappropriate method of overhead allocation for its products.
4)
an obligation to replace its production manager.