Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $202,000 of raw materials on credit; issued materials to production of $199,000 of which $26,000 were indirect. Minstrel incurred a factory payroll of $154,000, of which $36,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $185,000 during the month, compute the amount of under- or overapplied overhead: Multiple Choice $8,000 underapplied. $8,000 overapplied. $31,000 overapplied. $31,000 underapplied. $46,000 overapplied