Diaz company uses a predetermined overhead rate of $6.00 per machine hour. If 70,000 machine hours were worked this year and actual overhead costs of $380,000 were incurred, what was the amount of underapplied or overhead? A) $420,000 overapplied B) $420,000 underapplied C) $40,000 overapplied D) $40,000 underapplied