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-.