Harvard Binding had budgeted direct labor costs of $870,000 and budgeted manufacturing overhead of $304,500. It allocates manufacturing overhead based on direct labor costs. If actual direct labor costs were $840,000 and actual manufacturing overhead costs were $286,000, identify the true statement.

A. The company applied more overhead than it incurred.

B. The company estimated less overhead than it applied.

C. The company incurred more overhead than it estimated.

D. The company estimated less overhead than it incurred.