Crane Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year as follows:

Actual manufacturing overhead		$165000
Estimated manufacturing overhead		$156400
Direct labor incurred		2200 hours @ $20 = $44000
Direct labor estimated		2300 hours @ $19 = $43700

How much is over- or underapplied overhead at year end?

A. $7500 underapplied.

B. $6800 underapplied.

C. $8600 overapplied.

D. $15400 underapplied.