Paul Company Used a Predetermined Overhead Rate During the Year

Multiple Choice

Paul Company used a predetermined overhead rate during the year just completed of $3.50 per direct labor-hour,based on an estimate of 22,000 direct labor-hours to be worked during the year.Actual overhead cost and activity during the year were: $\begin{array}{llcc} \text { Actual manufacturing overhead cost incurred } &\$90,000 \\\text {Actual direct labor-hours worked } &25,000\end{array}$
The underapplied or overapplied overhead for the year would be:

A) $13,000 underapplied
B) $10,500 overapplied
C) $2,500 overapplied
D) $2,500 underapplied