Q 15.40:During the current year, Elk Company incurred the following direct labor costs: January $40,000 and February $60,000. Elk uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled $39,000 and $71,400. Actual overhead for the 2 months, respectively, totaled $50,000 and $67,000? Was overhead under- or overapplied during February and by how much?

A : $2,000 underapplied

B : $5,000 overapplied

C : $2,000 overapplied

D : $5,000 underapplied