Beaver Company Used a Predetermined Overhead Rate Last Year of $2

Multiple Choice

Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour based on an estimate of 25,000 direct labour hours to be worked during the year.Actual costs and activity during the year were:
$\begin{array}{|l|l|}\hline \begin{array}{l}\text { Actual manufacturing overhead cost } \\\text { incurred }\end{array} & \$ 47,000 \\\hline \text { Actual direct labour hours worked } & 24,000 \\\hline\end{array}$
What was the under- or overapplied overhead last year?

A) $1,000 underapplied.
B) $1,000 overapplied.
C) $2,000 underapplied.
D) $3,000 overapplied.