Q$3.$ Comtell Inc. makes computer peripherals. Until recently, production scheduling and control $($PSC$)$ costs were predicted to vary in proportion to labor costs according to the following cost function:

Y $=2$ x labor cost

Comtell$$s controller completed activity analysis to obtain another cost function using different cost driver, i$.$e$.$ number of components used:

Y $=$ $$10,000+(11$ x number of components used$)$

During a subsequent month, labor costs were $$12,000$ and $2,000$ product components were used. Actual PSC costs were $$31,460.$ Using each of the preceding cost functions, calculate the difference between predicted and actual costs. What can you conclude from the difference observed, overestimate or underestimate?