A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $250,116 and direct labor hours would be 41,686. Actual factory overhead costs incurred were $305,078, and actual direct labor hours were 52,965. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

a.$317,790 overapplied

b.$12,712 underapplied

c.$67,674 underapplied

d.$12,712 overapplied