AFD Production Uses a Predetermined Overhead Rate Based Upon Direct

AFD Production uses a predetermined overhead rate based upon direct labour hours. The firm has the following budgeted and actual data for the current year:
Budgeted factory overhead cost $6000
Actual factory overhead cost $5000
Budgeted direct labour hours 1000
Actual direct labour hours 1100
What was the amount of underapplied or overapplied overhead for the year?

A) $500 overapplied
B) $500 underapplied
C) $1600 underapplied
D) $1600 overapplied