Koebel Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Koebel Corp. estimated total manufacturing overhead cost at $500,000 and total direct labor hours of 50,000 . Koebel Corp. started the year with no beginning balances in either Work in Process Inventory or Finished Goods Inventory. During the year, actual manufacturing overhead incurred was $12,500 and 49,000 direct labor hours were used. Compute the over or underapplied overhead. $50,000 over applied $22,500 underapplied $22,500 over applied $0,000 underapplied