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: $26,000 under-applied $5,000 under-applied $21,000 under-applied $4,000 under-applied.