Manufacturing overhead was estimated to be $312,000 for the year along with 20,800 direct labor hours. Actual manufacturing overhead was $335,000, and actual labor hours were 23,300. Which of the following would be correct?

Overhead is underapplied by $23,000

Overhead is overapplied by $23,000

Overhead is overapplied by $14,500

Overhead is underapplied by $14,500