The Magnanimous Company uses a predetermined overhead rate of $12 per direct labor hour to apply overhead. During the year, 30,000 direct labor hours were worked. Actual overhead costs for the year were $320,000. The overhead variance is:
$36,000 overapplied
$40,000 overapplied
$35,560 underapplied
$40,000 underapplied
none of the above