Vikings Company Incurred Actual Overhead Costs of $297,500 for the Year.A

Vikings Company incurred actual overhead costs of $297,500 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) $2,500 overapplied
C) $10,000 underapplied
D) $10,000 overapplied