The Mason Corporation Budgeted Overhead at $240,000 for the Period

Multiple Choice

The Mason Corporation budgeted overhead at $240,000 for the period for Department A based on a budgeted volume of 60,000 direct labor hours. At the end of the period, the factory overhead control account for Department A had a debit balance of $260,000; actual direct labor hours were 63,000. What was the under- or over applied factory overhead for the period?

A) $12,000 overapplied
B) $ 8,000 overapplied
C) $ 8,000 underapplied
D) $12,000 underapplied