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. A. Overhead is underapplied. B. This is viewed as an unfavorable situation. C. There will be a $5,000 debit balance in Factory Overhead. D. All of the above. E. None of these.