Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 50,000 actual direct labor-hours and incurred $720,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 48,000 direct labor-hours during the year and incur $672,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

underapplied by $20,000

underapplied by $28,000

overapplied by $20,000

overapplied by $28,000