Maher, Inc., applies manufacturing overhead at the rate of $60 per machine hour. Budgeted machine hours for the current period were anticipated to be 80,000; however, a lengthy strike resulted in actual machine hours being worked of only 65,000. Budgeted and actual manufacturing overhead figures for the year were $4,800,000 and $4,180,000, respectively. On the basis of this information, the company's year-end overhead was:
a. underapplied by $900,000.
b. underapplied by $620,000.
c. underapplied by $280,000.
d. overapplied by $280,000.
e. overapplied by $620,000.