Tails company had a budgeted overhead of 85,000 for the year ended 31^st March 2016. Budgeted production was 17,000 units. Each unit takes 15 minutes to manufacture. Overheads are absorbed on the basis of labour hours. Actual hours worked were 4,100. Actual units produced were 15,600. Actual overheads were 81,000

The overheads were:

Under applied by 3,000

Under applied by 4,000

Over applied by 4,000

Over applied by 3,000

OR

Over applied by 1,000

????