The Following Information Was Taken from the Cost Records of the Krameer

Multiple Choice

The following information was taken from the cost records of the Krameer Company: $\begin{array}{|lr|}\hline\text { Estimated overhead } & \$ 180,000 \\\text { Actual overhead } & \$ 178,000 \\\text { Estimated direct labor hours } & 24,000 \\\text { Actual direct labor hours } & 25,000\\\hline\end{array}$
If overhead is applied based on direct labor hours,the company's overapplied or underapplied overhead was

A) $2,000 overapplied.
B) $2,000 underapplied.
C) $9,500 overapplied.
D) $9,500 underapplied.