Bonehead Co. has the following factory overhead costs for the most recent period:

Standard overhead applied to this periods production	$	71,000
Flexible budget for overhead based on output (i.e., units produced)		66,000
Total budgeted overhead in the master (static) budget		95,000
Actual total overhead cost incurred during the period		78,000

The total underapplied or overapplied factory overhead for Bonehead Co. for the period, to the nearest whole number, is:

Multiple Choice

$10,000 overapplied.

$7,000 underapplied.

$17,000 underapplied.

$14,000 underapplied.

$13,000 overapplied.