Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $59,600 and 2,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $61,200 and actual direct labor-hours were 1,750.

The overhead for the year was:

$9,050 overapplied

$7,450 overapplied

$7,450 underapplied

$9,050 underapplied