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 labor-hour,based on an estimate of 25,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: $\begin{array}{llcc} \text { Actual manufacturing overhead cost incurred } &\$47,000 \\\text {Actual direct labor-hours worked } &24,000\end{array}$
The underapplied or overapplied overhead last year was:

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