Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
Bow Wow Corp. uses a standard cost system to compute product costs. Standard costs are as follow:

During April, Bow Wow produced 200,000 units.
-During April, Bow Wow Corporation incurred $104,000 of overhead cost. At the end of April, Bow Wow

A) had $4,000 of underapplied overhead.
B) had $4,000 of overapplied overhead.
C) had a $4,000 favorable overhead rate variance.
D) needs to increase Work in Process Inventory by $4,000.
E) none of the above.