Assume that actual overhead consisted of $30,000 for indirect labor, $20,000 for indirect material, and $10,000 for depreciation of factory equipment. Based on the preset rates, $65,000 of overhead was applied to work in process

. a. Overhead is underapplied.

b. This is viewed as an unfavorable situation.

. There will be a $5,000 debit balance in Factory Overhead. d. All of the above.

e. None of these