The Following Activity Took Place in the Past Year The Under- or Overapplied Overhead for the Year Was
A)

The following activity took place in the past year: $\begin{array}{lr}\text { Raw materials purchased } & \$ 160,000 \\\text { Raw materials used (90\% direct, } 10 \% \text { indirect) } & \$ 140,000 \\\text { Factory utility costs incurred } & \$ 40,000\\\text { Salaries and wages incurred (80\% direct, } 10 \% \text { indirect, }\\10 \% \text { administrative) } & \$ 250,000 \\\text { Factory amortization } & \$ 25,000 \\\text { Amortization on sales staff cars } & \$ 12,000 \\\text { Estimated overhead allocation rate } & 52 \% \text { of direct labour cost } \\\text { Cost of jobs completed } & \$ 300,000\end{array}$ The under- or overapplied overhead for the year was

A) $0
B) $12,000 underapplied
C) $20,000 underapplied
D) None of the above