Wisteria Company uses an overhead rate based on direct labor hours. It has provided the following data:

Budgeted overhead	$80,000
Budgeted direct labor hours	10,000 hrs.
Actual overhead	$86,000
Actual direct labor hours	10,860 hrs.

A. What is the applied overhead? $fill in the blank 1

B. What is the overhead variance? Is it overapplied or underapplied? $fill in the blank 2

OverappliedUnderapplied