Mark Corporation estimates its manufacturing overhead to be $140,000 and its direct labor costs to be $250,000 for Year 1. The actual direct labor costs for the year include: Job 301 $60,000 Job 302 82,000 Job 303 98,000 The actual manufacturing overhead was $136,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs by using predetermined rates. What was the over- or underapplied manufacturing overhead for Year 1? $1,600 overapplied $1,600 underapplied $5,440 overapplied $5,440 underapplied