Manufacturing overhead was estimated to be $426,300 for the year along with 20,300 direct labor hours. Actual manufacturing overhead was $440,000, and actual labor hours were 21,500. Which of the following would be correct?

a. Overhead is overapplied by $11,500.

b. Overhead is overapplied by $13,700.

c. Overhead is underapplied by $11,500.

d. Overhead is underapplied by $13,700.