Wert Corporation uses a predetermined overhead rate based on direct labor cost to apply manfacturing overhead to jobs. Last year, the company's estimated manufacturing was $1,200,000 and its estimated level of activity was 50,000 direct labor-hours. The company's direct labor wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labor cost of $650,000. For the year, manufacturing overhead was A) over-applied by $60,000 B)under-applied by $60,000 C) over-applied by $40,000 D) under-applied by $44,000 (Could you explain how did you come up with the answer?)