Fulton Company Incurred Actual Overhead Costs of $160,000 for the Year

Fulton Company incurred actual overhead costs of $160,000 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 $157,500, and budgeted direct-labour cost was $75,000. Actual direct-labour cost was $80,000 for the year. The factory overhead variance for the year was

A) $2,500 underapplied.
B) $2,500 overapplied.
C) $8,000 underapplied.
D) $8,000 overapplied.