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 1 Job 2 Job 3 Direct Materials $100,000 $150,000 $200,000 Direct 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. GHI's overhead costs for the year were: Multiple Choice

$20,000 under applied

$20,000 over applied

$55,000 over applied

$55,000 under applied