16. Meg Manufacturing uses the direct labor cost method for applying factory overhead to production. The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000, respectively. Actual direct labor cost and factory overhead were $1,100,000 and $825,000, respectively. What is the amount of under- or overapplied factory overhead? a. $25,000 overapplied b. $55,000 overapplied c. $80,000 overapplied d. $50,000 underapplied