June Inc's predetermined overhead rate is based on direct labor-hours. The estimated direct labore hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,650 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: $1,580 overapplied $1.580 underapplied $3,420 overapplied $3,420 underapplied