The Following Information Was Gathered for Gophers Company Assume the Cost Driver Is Direct-Labor Hours

Multiple Choice

The following information was gathered for Gophers Company: $$\begin{array} { l r } \text { Budgeted direct-labor hours } & 31,000 \\\text { Actual direct-labor hours } & 32,400 \\\text { Budgeted factory overhead } & \$ 147,250 \\\text { Actual factory overhead } & \$ 149,980\end{array}$$ Assume the cost driver is direct-labor hours.The amount of over/underapplied overhead is_____.

A) $2,730 underapplied
B) $2,730 overapplied
C) $6,450 underapplied
D) $3,920 overapplied