At the End of 2009, Barbarich Corp

At the end of 2009, Barbarich Corp. made the following estimates to compute its predetermined overhead rate for 2010: $40,000,000 of overhead costs and 10,000,000 direct labor hours. Barbarich incurred 9,800,000 actual direct labor hours and $40,300,000 of actual overhead costs. Was overhead underapplied or overapplied in 2010 and by how much?

A) $ 200,000 underapplied
B) $ 300,000 underapplied
C) $ 300,000 overapplied
D) $1,100,000 underapplied
E) $1,100,000 overapplied