Collins Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information applies to the Corporation for the current year:

Direct labor-hours: Estimated for the year 24,000 Actual hours worked 19,500 Direct labor cost: Estimated for the year $300,000 Actual cost incurred $210,000 Manufacturing overhead: Estimated for the year $240,000 Actual cost incurred $185,000

The manufacturing overhead cost for the current year will be: $17,000 overapplied $17,000 underapplied $55,000 overapplied $55,000 underapplied