XYZ Company applies overhead to jobs using direct labor cost as the activity level. For the month of May, XYZ Company estimated it would incur overhead cost of $40,000 while the actual overhead cost for May totaled $41,720. For May, XYZ Company estimated it would incur direct labor cost of $50,000 while the actual direct labor cost during May totaled $44,600. For May, overhead was O $1,720 over-applied $14,030 under-applied O $4.320 under-applied O $6,040 over-applied O $4,320 over-applied O $6,040 under-applied O $1,720 under-applied O $14,030 over-applied O none of the above choices are correct