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 machine hours, the overapplied/underapplied overhead is:

$20,400 underapplied.

$20,400 overapplied.

$48,374 underapplied.

$48,374 overapplied.

$-0-.