Beaver Company Used a Predetermined Overhead Rate Last Year of $2

Multiple Choice

Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour, based on an estimate of 25,000 direct labour hours to be worked during the year. Actual costs and activity during the year were: $$\begin{array} { | l | l | } \hline \text { Actual manufacturing overhead cost incurred } & \$ 47,000 \\\hline \text { Actual direct labour hours worked } & 24,000 \\\hline\end{array}$$ The underapplied or overapplied overhead last year was:

A) $2,000 underapplied.
B) $3,000 overapplied.
C) $1,000 underapplied.
D) $1,000 overapplied.