The Following Activity Took Place in the Past Year: Raw

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