Media, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $152,000, direct professional labor hours were estimated to be 19,000, and direct professional labor cost was projected to be $285,000. During the year, Media incurred actual overhead costs of $149,300, actual direct professional labor hours of 18,500, and actual direct labor cost of $279,000. By year-end, the firm's overhead was:

$1,300 underapplied.

$1,300 overapplied.

$2,700 underapplied.

$2,700 overapplied.

$4,000 underapplied.