Waterway Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year as follows: $169900 $166400 Actual manufacturing overhead Estimated manufacturing overhead Direct labor incurred Direct labor estimated 2500 hours @ $24 = $60000 2600 hours @ $23 = $59800 How much is over or underapplied overhead at year end? $9900 underapplied. $6400 underapplied. $3500 overapplied. $6796 underapplied