Burkett Company Uses a Standard Cost System

Multiple Choice

Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. Actual results were: Standard direct labour hours 9,000
Actual direct labour hours 10,000
Fixed overhead $190,000
Variable overhead $185,000
The over- or underapplied overhead was:

A) $50,000 under
B) $10,000 over
C) $60,000 under
D) $20,000 over