The Following Information Was Gathered for Badgers Company Assume the Cost Driver Is Direct- Labor Hours

question 47

Multiple Choice

The following information was gathered for Badgers Company: $\begin{array}{ll}\text { Budgeted dir ect-labor hours } & 31,000 \\\text { Actual dir ect- lab or hours } & 32,400 \\\text { Budgeted factory overhead } & \$ 147,250 \\\text { Actual factory overhead } & \$ 149,980\end{array}$ Assume the cost driver is direct- labor hours. The amount of over/underapplied overhead is:

• A) $3,920 overapplied
• B) $2,730 overapplied
• C) $6,450 underapplied
• D) $2,730 underapplied