Boyd Company Incurred Actual Overhead Costs of $305,000 for the Year

Boyd Company incurred actual overhead costs of $305,000 for the year. A budgeted factory- overhead rate of 150% of direct- labor cost was determined at the beginning of the year. Budgeted factory overhead was $300,000, and budgeted direct- labor cost was $200,000. Actual direct- labor cost was $205,000 for the year. The factory overhead variance for the year was:

A) $2,500 underapplied
B) $5,000 underapplied
C) $2,500 overapplied
D) $5,000 overapplied