Arca Incorporated makes a single product-a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: 
The total manufacturing overhead is underapplied or overapplied by how much?
Definitions:
Positive Reinforcement Technique
A behavior modification strategy that involves rewarding desirable behaviors to increase the likelihood of their recurrence.
Intrinsic Motivation
The drive to perform an activity for its own sake and personal rewards, rather than for some external reward or pressure.
Automobile Showroom
A retail space where new or used cars are displayed for sale to potential buyers.
Fixed Ratio Schedules
A type of reinforcement schedule where a response is reinforced only after a specified number of responses.
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