Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $$196,000$ of raw materials on credit; issued materials to production of $$207,000$ of which $$18,000$ were indirect. Minstrel incurred a factory payroll of $$151,000,$ of which $$28,000$ was indirect labor. Minstrel uses a predetermined overhead application rate of $150\%$ of direct labor cost. If Minstrel incurred total overhead costs of $$186,000$ during the month, compute the amount of under$-$or overapplied overhead:

$$1500$ underapplied.

$$40,500$ overapplied.

$$1500$ overapplied.

$$35,000$ underapplied.

$$35,000$ overapplied.