Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $456,000, and direct labor costs to be $2,280,000. Actual overhead costs for the year totaled $422,000, and actual direct labor costs totaled $1,940,000. At year-end, Factory Overhead is:

a) Overapplied by $68,000.

b) Overapplied by $34,000

c) Underapplied by $34,000.

d) Overapplied by $211,000.

e) Neither overapplied nor underapplied