The following information was taken from the cost records of the Solom Corporation: Estimated manufacturing overhead $89.000 Actual manufacturing overhead $84,000 Estimated direct labor hours 12,000 Actual direct labor hours 12,500 Solom applies manufacturing overhead based on direct labor hours. How much is over applied or under applied manufacturing overhead closest to?
A. $5,000 overapplied.
B. $8,708 overapplied.
C. $1,500 overapplied.
D. $1,500 underapplied.
E. $3,500 underapplied