Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $1,682,000 of factory overhead costs and use 58,000 machine hours. Erkens Company recorded the following events during the month of April:

1. Purchased 210,000 pounds of materials on account; the cost was $4.90 per pound.
2. Issued 135,000 pounds of materials to production, of which 22,500 pounds were used as indirect materials.
3. Incurred direct labor costs of $315,000 and $55,000 of indirect labor costs.
4. Recorded depreciation on equipment for the month, $78,700.
5. Recorded expired insurance costs for the manufacturing property, $5,000.
6. Paid $10,000 cash for utilities and other miscellaneous items for the manufacturing plant.
7. Completed Job H11 costing $9,000 and Job G28 costing $84,500 during the month and transferred them to the Finished goods inventory account.
8. Shipped Job G28 to the customer during the month. The job was invoiced at 40% above cost.
9. Used 10,700 machine hours during April.

Based on the above information, what is the amount of overapplied or underapplied overhead?

	A.	Overhead is overapplied by $51,350.
	B.	Overhead is underapplied by $1,371,700.
	C.	Overhead is underapplied by $170,133.
	D.	Overhead is underapplied by $114,308.
	E.	Overhead is overapplied by $114,308.