XYZ uses machine hours as its overhead cost allocation driver.

Estimated manufacturing overhead	$690,000
Estimated machine hours	46,000
Actual machine hours worked	50,000

Actual manufacturing overhead costs incurred:
Indirect materials	$170,000
Indirect labor	230,000
Utilities	120,000
Insurance	100,000
Rent	80,000

The amount of overapplied or underapplied overhead is:

A) $10,000 underapplied.

B) $40,000 underapplied.

C) $50,000 overapplied.

D) $65,200 underapplied.

E) $60,000 overapplied.