Dukes Company used a predetermined overhead rate this year of $$2$ per direct labor hour, based on an estimate of $20,000$ direct labor hours to be worked during the year. Actual costs and activity during the year were:

Actual manufacturing overhead cost incurred......$$38,000$

Actual direct labor hours worked..............................$\mathrm{.}18,500$

The under$-$ or overapplied overhead for the year was:

Group of answer choices

$$1,000$ underapplied

$$1,000$ overapplied

$$3,000$ underapplied

$$3,000$ overapplied