Earth, Moon, and Sky, Inc. manufactures telescopes. The company applies manufacturing overhead to production using machine hours. The following information is for the year just ended: Budgeted manufacturing overhead . . \$350,000 Budgeted machine hours ... 10,000 Actual manufacturing overhead $362,000 Actual machine hours . . 11,000 Based on the above information, manufacturing overhead was overallocated to production by $20,909. underallocated to production by $37,295. overallocated to production by $23,000. underallocated to production by $35,000. overallocated to production by $12,000