A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $436,050 and direct labor hours would be 43,605. Actual factory overhead costs incurred were $522,893, and actual direct labor hours were 54,468. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

a.$21,787 underapplied

b.$108,630 underapplied

c.$21,787 overapplied

d.$544,680 overapplied