Victryl Company Applies Overhead Based on Direct Labor Hours

Multiple Choice

Victryl Company applies overhead based on direct labor hours.At the beginning of the year, Victryl estimates overhead to be $700,000, machine hours to be 200,000, and direct labor hours to be 35,000.During February, Victryl has 5,000 direct labor hours and 10,000 machine hours.
If the actual overhead for February is $98,300, what is the overhead variance, and is it overapplied or underapplied?

A) $1200 underapplied
B) $800 overapplied
C) $1,000 underapplied
D) $1,700 overapplied
E) $600 overapplied