Jackson Inc. listed the following data for 2019: Budgeted factory overhead Budgeted direct labor hours Budgeted machine hours Actual factory overhead Actual direct labor hours Actual machine hours $1,271,000 82,000 41,000 1,201,000 86,300 39,400 If overhead is applied based on direct labor hours, overapplied/underapplied overhead is (round calculations to 2 significant digits): Multiple Choice $174,775 overapplied. $174,775 underapplied $136,650 underapplied $136,650 overapplied