Freeman Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $150,000 and direct labour hours would be 10,000. The actual figures for the year were $186,000 for manufacturing overhead and 12,000 direct labour hours. The cost records for the year will show which of the following? 1) Overapplied overhead of $30,000 2) Underapplied overhead of $30,000 3) Underapplied ove nead of $6,000 O4) Overapplied overhead of $6,000