Ohio Manufacturing uses a job-order costing system. Ohio incurred a factory payroll of $140,000, of which $50,000 was indirect labor. Ohio uses a predetermined overhead application rate of 150% of direct labor cost. If Ohio incurred total overhead costs of $137,800 during the month, compute the amount of underapplied or overapplied overhead: O a. $2,800 overapplied Ob. $2,800 underapplied O c. $72,200 overapplied Od. $72,200 underapplied Oe. $92,800 overapplied