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 $370,672 and direct labor hours would be 46,334. Actual factory overhead costs incurred were $399,299, and actual direct labor hours were 51,992. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

a.$45,264 underapplied

b.$16,637 underapplied

c.$415,936 overapplied

d.$16,637 overapplied