$(29)14.$ Potter Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $$1,200,000$ and its estimated level of activity was direct labor cost of $$600,000$ for $50,000$ direct labor$-$hours. The company's estimated and actual direct labor wage rate is $$12$ per hour. Actual manufacturing overhead amounted to $$1,240,000,$ with actual direct labor cost totaling $$650,000.$ For the year, manufacturing overhead was:

a$.$ overapplied by $$60,000$

b$.$ underapplied by $$60,000$

c$.$ overapplied by $$40,000$

d$.$ underapplied by $$40,000$

e$.$ underapplied by $$44,000$