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The Davis Corporation budgeted factory overhead at $250,000 for the period for the Assembly department, based on a budgeted volume of 100,000 direct labor hours.

The Davis Corporation budgeted factory overhead at $250,000 for the period for the Assembly department, based on a budgeted volume of 100,000 direct labor hours. At the end of the period, the factory overhead control account for the Assembly department had a balance of $252,000. The actual (and allowed) direct labor hours were 104,000. What was the over- or underapplied factory overhead for the period?
A. $8,000 overapplied
B. $10,000 underapplied
C. $10,000 overapplied
D. $8,000 underapplied

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