During 2012, Crema Manufacturing Expected Job 59 to Cost $300,000

Multiple Choice

During 2012, Crema Manufacturing expected Job 59 to cost $300,000 of overhead, $500,000 of material, and $200,000 in labour.Crema applied overhead based on direct labour cost.Actual production required an overhead cost of $280,000, $550,000 in materials used; and $220,000 in labour.All of the goods were completed.How much is the amount of over/under applied overhead?

A) $50,000 under-applied
B) $50,000 over-applied
C) $20,000 under-applied
D) $20,000 over-applied