The Brookstone Company Produces 9 Volt Batteries and AAA Batteries

Multiple Choice

The Brookstone Company produces 9 volt batteries and AAA batteries. The Brookstone Company uses a plantwide rate to apply overhead based on direct labor hours. The following data is given: $$\begin{array} { | l | l | } \hline \text { Actual Overhead } & \$ 325,000 \\\hline \text { Estimated Overhead } & \$ 350,000 \\\hline \text { Estimated Activity: } & \\\hline 9 \text { volt battery } & 100,000 \text { direct labor hours } \\\hline \text { AAA battery } & 400,000 \text { direct labor hours } \\\hline \text { Actual Activity: } & \\\hline 9 \text { volt battery } & 125,000 \text { direct labor hours } \\\hline \text { AAA battery } & 400,000 \text { direct labor hours } \\\hline \text { Units Produced: } & \\\hline 9 \text { volt battery } & 500,000 \\\hline \text { AsA battery } & 250,000 \\\hline\end{array}$$
How much was overhead over/underapplied?

A) $25,000
B) $17,500
C) $42,500
D) none of these