Minstrel Manufacturing uses a job order costing system. During the month, Minstrel purchased $188,000 of raw materials on credit; issued materials to production of $215,000 of which $10,000 were indirect. Minstrel incurred a factory payroll of $159,000, of which $20,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $198,600 during the month, compute the amount of under- or overapplied overhead: Multiple Choice $39,600 overapplied. $9,900 underapplied. $9,900 overapplied. $39,600 underapplied. $39,900 overapplied