7. Clear Colors Corporation uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs. At the beginning of the year, the Corporation estimated its total manufacturing overhead cost at $350,000 and its direct labor costs at $200,000. The actual overhead cost incurred during the year was $362,000 and the actual direct labor costs incurred on jobs during the year was $208,000. How much would the manufacturing overhead for the year be? O A. $12,000 overapplied O B. $2,000 underapplied O C. $12,000 underapplied O D. $2,000 overapplied