THE Company applies overhead costs to jobs using direct labor cost as an activity. For the current year, THE Company reported estimated overhead cost of $400,000 while the actual overhead cost totaled $420,000. THE's estimated direct labor cost was $200,000 while the actual direct labor cost was $190,000. For the current year, overhead was:

Group of answer choices

under-applied by $10,000

under-applied by $20,000

under-applied by $30,000

under-applied by $40,000

over-applied by $10,000

over-applied by $20,000

over-applied by $30,000

over-applied by $40,000

none of the above choices are correct