Stanley Company uses normal costing to record its overhead. The following information pertains to 2020:

Raw materials placed into production	$140,000
Indirect labor	20,000
Factory building lease	60,000
Indirect materials	44,000
Direct labor (8,000 hours)	128,000
Beginning raw material inventory	10,000
Ending raw material inventory	40,000
Beginning work in process inventory	30,000
Ending working in process inventory	55,000

Stanley uses direct labor hours to allocate its fixed manufacturing overhead to each unit. For 2020, Stanley estimated fixed manufacturing overhead costs to be $180,000 and estimated that it would take 2 dl-hrs/unit to produce the budgeted production of 5000 units. Actual units produced were 4500. What is the amount of under- or overapplied overhead for Hamler in 2020?

Group of answer choices

$20,000 overapplied

$38,000 overapplied

$20,000 underapplied

38,000 underapplied