The following accounts are from last years books at Sharp Manufacturing:

Raw Materials
Debit		Credit
Balance	0	(b)	155,400
(a)	167,500
	12,100

Work In Process
Debit		Credit
Balance	0	(f)	515,600
(b)	132,700
(c)	169,400
(e)	213,500
	0

Finished Goods
Debit		Credit
Balance	0	(g)	467,000
(f)	515,600
	48,600

Manufacturing Overhead
Debit		Credit
(b)	22,700	(e)	213,500
(c)	26,700
(d)	157,400
			6,700

Cost of Goods Sold
Debit		Credit
(g)	467,000

Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year?

Multiple Choice

$6,700 underapplied

$6,700 overapplied

$26,700 underapplied

$26,700 overapplied