Augusta Company uses a job order costing system . They have the following cost data for XYZ Department :

Incurred By Job # 300 : Direct Materials : $1,000 Direct Labor : $7,000

Incurred By Job #301 : Direct Materials : $26,000 Direct Labor : $53,000

Incurred By Job #302 : Direct Materials : $12,000 Direct Labor $9,000

Incurred By Job #303 : Direct Materials : $4,000 Direct Labor : $1,000

Total Direct Material Cost : $43,000 Total Direct Labor Cost : $70,000

Actual Manufacturing Overhead Costs for the current year :

Indirect Materials : $15,000

Indirect Labor : $53,000

Employee Fringe Benefits : $23,000

Depreciation : $12,000

Supervision : $20,000

Total : $123,000

XYZ Department's predetermined overhead rate for the year is based on direct labor cost :

Budgeted Direct Labor Cost : $80,000

Budgeted Overhead : Variable : $98,000 Fixed : $38,000

What is the under-applied or over-applied overhead cost for XYZ Department for the year?

A) 4,000 overapplied B) 11,000 overapplied C) 4.000 underapplied D) 11,000 underapplied E) 5,000 overapplied

Please show help with steps and answer