(AlCPA) Under or overapplied overhead Nil Co. uses a predetermined factory overhead application rate based on direct labor cost. For the year ended December 31,1992, Nil's budgeted factory overhead was $600,000, based on a budgeted volume of 50,000 direct labor hours, at a standard direct labor rate of $6.00 per hour. Actual factory overhead amounted to $620,000, with actual direct labor cost of $325,000. For 1992, overapplied factory overhead was:

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a. $20,000 b. $25,000 c. $30,000 d. $50,000