During 2014, Terra Manufacturing expected Job No. 59 to cost $700,000 of overhead, $1,000,000 of materials, and $500,000 in labor. Terra applied overhead based on direct labor cost. Actual production required an overhead cost of $580,000, $1,200,000 in materials used, and $450,000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?

$50,000 overapplied

$120,000 underapplied

$120,000 overapplied

$50,000 underapplied