Antoine Machining estimated its manufacturing overhead to be $283,960 and its direct materials costs to be $458,000 in Year 1. Three of the jobs that Antoine Machining worked on in Year 1 had actual costs of $82,000, $105,000, and $135,000 respectively. What is the total amount of under- or over-applied overhead for Year 1?
A) $12,960 over-applied.
B) $21,040 under-applied.
C) $21,040 over-applied.
D) $12,960 under-applied.