Avery Co. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs.For the month of October, Avery's estimated manufacturing overhead cost was $300,000 based on an estimated activity level of 100,000 direct labor hors.Actual overhead amounted to $325,000 with actual direct labor hours totaling 110,000 for the month.How much was the overapplied or underapplied overhead?

A. $5,000 overapplied

B. $25,000 underapplied

C. $25,000 overapplied.

D.$5,000 underapplied