Comet Company reported the following costs during the period:

Direct materials $ 77,000

Sales commissions $ 30,000

Factory depreciation $ 24,000

Direct labor $156,000

Indirect labor $ 60,000

Indirect materials $ 12,000

Other factory related costs $125,000

Comet applies manufacturing overhead to jobs using a predetermined rate based on a formula that estimated $200,000 of manufacturing overhead for an estimated activity level of $160,000 direct labor dollars. Over- or under-applied manufacturing overhead for the period is closest to

	A.	$21,000 under-applied
	B.	$4,000 under-applied
	C.	$26,000 under-applied
	D.	$5,000 under-applied