Tom Nook manufactures island houses. Manufacturing overhead was estimated to be $$190,950$ for the year along with $20,100$ direct labor hours. Actual manufacturing overhead was $$193,000,$ and actual labor hours were $19,900.$ Which of the following would be correct?

Multiple Choice

Overhead is overapplied by $$23,000.$

Overhead is underapplied by $$23,000.$

Overhead is overapplied by $$14,500.$

Overhead is underapplied by $$3,950.$