A manufacturing company uses a standard cost system that applies overhead based upon direct labor hours. The manufacturing budget for the production of 7,500 units for the month is shown below: Direct labor (15,000 hours at $20 per hour) Variable overhead Fixed overhead $300,000 50,000 105,000 During the month, 8,000 units were produced, and the fixed overhead budget variance was $1,000 unfavorable. Fixed overhead during the month was OA. Overapplied by $6,000. O B. Underapplied by $7,000. C. Overapplied by $7,000. O D. Underapplied by $6,000