The following activity took place in the past year:

Raw materials purchased		$160,000
Raw materials used (90% direct, 10% indirect)		$140,000
Factory utility costs incurred		$40,000
Salaries and wages incurred (80% direct, 10% indirect,
10% administrative)		$250,000
Factory amortization		$25,000
Amortization on sales staff cars		$12,000
Estimated overhead allocation rate		52% of direct labour cost
Cost of jobs completed		$300,000

The under- or overapplied overhead for the year was

a) $0

b) $12,000 underapplied

c)$20,000 underapplied

d) None of the above