Lonestar Corporation uses a job-order costing system to account for product costs. The following information pertains to 2018:

Materials Placed into Production	$140,000
Indirect Labor	40,000
Direct Labor (10,000 hours)	160,000
Depreciation of Factory Building	60,000
Other Factory Overhead	100,000
Increase in Work-in-Process Inventory	30,000

Factory overhead rate is $18 per direct labor hour. What is the amount of under- or overapplied overhead for Lonestar Corporation in 2018?

	a.	$20,000 underapplied
	b.	$40,000 overapplied
	c.	$20,000 overapplied
	d.	$40,000 underapplied