Linden Company expected its manufacturing costs for 2014 to be $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Linden applied overhead using a predetermined rate based upon direct labor costs. Actual production required overhead costs of $310,000, $525,000 in materials used, and $220,000 in labor. All of the goods were completed. How much is overhead under- or overapplied?

Select one:

a. $20,000 overapplied

b. $55,000 underapplied

c. $10,000 underapplied

d. $10,000 overapplied