1. During 2016, Crema Manufacturing expected Job 59 to cost $300,000 of overhead, $500,000 of material, and $200,000 in labour. Crema applied overhead based on direct labour cost. Actual production required an overhead cost of $280,000; $550,000 in materials used; and $220,000 in labour. All of the goods were completed. How much is the amount of over- or under-applied overhead?

1. $50,000 under-applied
2. $50,000 over-applied
3. $20,000 under-applied
4. $20,000 over-applied