The following accounts are from this years pencils at Josh's Pencil and Pen Company that trades and sells specialized encrypted pencils and pens:

Raw Materials
Bal	0	(b)	155,400
(a)	167,500
	12,100

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

Finished Goods
Bal	0	(g)	467,000
(f)	515,600
	48,600

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

Cost of Goods Sold
(g)	467,000

Josh's Pencil and Pen Company uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for this year?

Multiple Choice

• $6,700 underapplied

• $26,700 overapplied

• $6,700 overapplied

• $26,700 underapplied