Answer:
a. $2,000 underapplied.
Explanation:
Estimated Overhead = $216,000
Estimated Professional hours = 18,000
Predetermined overhead rate = $216,000 / 18,000 = $12 per hour
Actual Professional hours = 17,500
Overhead applied = $12 x 17,500 hours = $210,000
Actual overhead = $212,000
Under applied overhead = Applied overhead - Actual overhead
Under applied overhead = $210,000 - $212,000
Under applied overhead = $2,000