Mendoza Company incurred actual overhead costs of $297,500 for the year. A budgeted factory overhead rate of 150% of direct labor cost was determined at the beginning of the year. Budgeted factory overhead was $300,000 and budgeted direct labor cost was $200,000. Actual direct labor cost was $205,000 for the year. The factory overhead variance for the year was $10,000 overapplied $2,500 overapplied $10,000 underapplied $2,500 underapplied