Wert Corporation uses a predetermined overhead rate based on direct labor cost to allocate manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead 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 $1,360,000, with actual direct labor cost of $650,000. For the year, manufacturing overhead was:

Select one:

a. underallocated by $60,000

b. overallocated by $40,000

c. underallocated by $44,000

d. overallocated by $60,000