Actual direct labor and manufacturing overhead costs for Smith Manufacturing were $ 122,000 and $ 306,000 respectively. The estimated costs for the year were $ 132,000 of direct labor and $ 327,000 in manufacturing overhead. The over (under) applied overhead for the year was:

A) $ 3,773 underapplied.

B) $ 3,773 overapplied.

C) $ 24,773 underapplied.

D) $ 24,773 overapplied.