Jensen Fly Fishing Shop applies overhead at a rate of $5 per direct labor hour. At the end of the month, the company had accumulated 7,000 direct labor hours and 7,800 machine hours. The company incurred $38,000 in actual manufacturing overhead. Manufacturing overhead was: O $3,000 overapplied. O $3,000 underapplied. O $1,000 overapplied. O $1,000 underapplied.