Reyes Corporation applies overhead using a normal costing approach based upon machine-hours. Budgeted factory overhead was $270,432, budgeted machine-hours were 18,780. Actual factory overhead was $289,320, actual machine-hours were 19,330. How much is the over- or underapplied overhead?

Multiple Choice

$6,388 overapplied.

$0.

$10,968 underapplied.

$17,356 underapplied.