The Following Information Was Gathered for All the Products Made

Multiple Choice

The following information was gathered for all the products made by the Ringaling Company:
$\begin{array}{ll}\text { Budgeted direct labor hours } & 31,000 \\\text { Actual direct labor hours } & 32,400\\\text { Budgeted factory overhead costs }&\$147,250\\\text { Actual factory overhead costs }&\$149,980\end{array}$
Assume the cost driver for factory overhead costs is direct labor hours.What is the amount of overapplied or underapplied overhead?

A) $2,730 underapplied
B) $2,730 overapplied
C) $3,920 underapplied
D) $3,920 overapplied