Assume that actual overhead consisted of $40,000 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. OC. There will be a $5,000 debit balance in Factory Overhead. OD."A", "B", and "C" O A. Overhead is underapplied. O B. This is viewed as an unfavorable situation