Jackson Inc. listed the following data for 2016:

Budgeted factory overhead	$1,271,000
Budgeted direct labor hours	82,000
Budgeted machine hours	41,000
Actual factory overhead	1,201,000
Actual direct labor hours	86,300
Actual machine hours	39,400
Round calculations to 2 significant digits

If overhead is applied based on direct labor hours, overapplied/underapplied overhead is:

rev: 01_29_2016_QC_CS-39827

$136,650 overapplied.

$136,650 underapplied.

$174,775 underapplied.

$174,775 overapplied.

$-0-.