Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $880,000 of total manufacturing overhead for an estimated activity level of 88,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: Machine-hours 79,000 Manufacturing overhead cost $ 836,000 Inventories at year-end: Raw materials $ 15,000 Work in process (includes overhead applied of $71,100) $ 171,900 Finished goods (includes overhead applied of $134,300) $ 324,700 Cost of goods sold (includes overhead applied of $584,600) $ 1,413,400 Is there an overapplied or underapplied overhead cost? How much? Underapplied Overhead cost of $46,000 No enough information to answer this question. Overapplied overhead cost of $46,000 o o o Underapplied overhead cost of $50,000 There is no overapplied or underapplied overhead cost. O Overapplied overhead cost of $50,000