At the end of July, the first month of the current

fiscal year, the factory overhead account had a debit

balance. Which of the following describes the nature

of this balance and how it would be reported on the

interim balance sheet?

a$.$ underapplied, deferred debit

b$.$ overapplied, deferred debit

c$.$ underapplied, deferred credit

d$.$ overapplied, deferred credit