Application Object Or Variable!

The following code exists in a Global.asa file:

----------------------------------------------
<%
Set Application("Thing")=Server.CreateObject("THINGDOER.THINGY")
%>
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Will the above code snippet:

create a non-object Application variable named "Thing" & place it in
the Contents collection of the Application object?

-----OR------

create an Application object named "Thing" & place it in the
StaticObjects collection of the Application object?