Swifty Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year as follows:

Actual manufacturing overhead	$167400
Estimated manufacturing overhead	$159600
Direct labor incurred	2700 hours @ $25 = $67500
Direct labor estimated	2800 hours @ $24 = $67200

How much is over or underapplied overhead at year end?

$7800 overapplied.

$13500 underapplied.

$5700 underapplied.

$6200 underapplied.