Juarez, Inc. designs and manufactures custom cabinets. The company uses a job-order costing system, and allocates overhead at $19 per direct labor hour. Over or underapplied overhead is not material. During May, Juarez's transactions included the following: Manufacturing overhead cost incurred 6,800 Direct labor cost incurred at $15 an hour $5,400 Direct materials purchased 11,500 Raw materials inventory, beginning 160 Raw materials inventory, ending Sales 280 23,000 Selling expenses 2,100 Work in process inventory, beginning 220 Work in process inventory, ending 250 How much is over or underapplied overhead for May? O $320 underapplied $1,400 overapplied O $40 underapplied O $40 overapplied $400 overapplied