Paul Company Used a Predetermined Overhead Rate During the Year

Multiple Choice

Paul Company used a predetermined overhead rate during the year just completed of $3.50 per direct labour hour,based on an estimate of 22,000 direct labour hours to be worked during the year.Actual overhead cost and activity during the year were: The underapplied or overapplied overhead for the year was:

A) $13,000 underapplied.
B) $10,500 overapplied.
C) $2,500 overapplied.
D) $2,500 underapplied.