GHI Inc. has commenced work on three jobs during its first year of operations. Costs incurred for each of these jobs are as follows:

Job 1Job 2Job 3Direct Materials$100,000$150,000$200,000Direct Labour$150,000$200,000$350,000

Overhead is applied to jobs at a rate of $0.20 per direct labour dollar spent. During the year, Job 1 was completed, while Job 2 was completed and sold. Job 3 is still process at the end of the year. Actual manufacturing overhead costs incurred amounted to $160,000. GHI employees worked a total of 55,000 hours during the year. what were GHI's overhead costs for the year?

a)20,000 under applied

b)20,000 over applied

c)55,000 under applied

d)55,000 over applied