Neptune Inc. uses a standard cost system and has the following information for the most recent month, April:

Actual direct labor hours (DLHs) worked		24,000
Standard DLHs allowed for good output produced this period		25,000
Actual total factory overhead costs incurred	$	55,000
Budgeted fixed factory overhead costs	$	10,700
Denominator activity level, in direct labor hours (DLHs)		17,000
Total factory overhead application rate per standard DLH	$	2.70

The total underapplied or overapplied factory overhead in April for Neptune, Inc., to the nearest whole dollar, was:

Multiple Choice

• $11,200 underapplied.

• $11,200 overapplied.

• $12,500 underapplied.

• $12,500 overapplied.

• $14,400 overapplied.