Asadi Company Uses a Job Costing System and Allocates Overhead

Asadi Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labour hours. Information for 20x5 is as follows: Estimated Actual
Manufacturing overhead $166,500 $165,000
Direct labour hours 50,000 60,000
The amount of over- or underapplied overhead for 20x5 was:

A) $1,500 underapplied
B) $3,000 underapplied
C) $1,500 overapplied
D) $34,800 overapplied