Collins Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information applies to the Corporation for the current year:

Direct labor-hours:
Estimated for the year	24,000
Actual hours worked	19,500
Direct labor cost:
Estimated for the year	$300,000
Actual cost incurred	$210,000
Manufacturing overhead:
Estimated for the year	$240,000
Actual cost incurred	$185,000

The manufacturing overhead cost for the current year will be:

$17,000 overapplied $17,000 underapplied $55,000 overapplied $55,000 underapplied