Thomlin Company forecasts that total overhead for the current year will be $16,744,000 with 182,000 total machine hours. Year to date, the actual overhead is $8,379,000, and the actual machine hours are 88,200 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

a.$281,400 underapplied

b.$281,400 overapplied

c.$264,600 underapplied

d.$264,600 overapplied