Reed Company Incurred Actual Overhead Costs of $640,000 for the Year

Reed Company incurred actual overhead costs of $640,000 for the year. A budgeted factory-overhead rate of 210 percent of direct-labour cost was determined at the beginning of the year. Budgeted factory overhead was $630,000, and budgeted direct-labour cost was $300,000. Actual direct-labour cost was $320,000 for the year. The factory overhead variance for the year was

A) $10,000 underapplied.
B) $10,000 overapplied.
C) $32,000 underapplied.
D) $32,000 overapplied.