The Johns Company Budgeted Factory Overhead at $125,000 for the Period

Short Answer

The Johns Company budgeted factory overhead at $125,000 for the period for Department A based on a budgeted volume of 50,000 direct labor hours. At the end of the period, the factory overhead control account for Department A had a balance of $126,000. The actual (and allowed) direct labor hours were 52,000. What was the over- or underapplied factory overhead for the period?
A)$6,500 underapplied
B)$6,500 overapplied
C)$4,000 underapplied
D)$4,000 overapplied