The following cost data pertains to GHI Inc. for December 31^st, 2019:

Beginning Work-in-Process:	$20,000
Ending Work-in-Process:	$8,000
Direct Materials Used:	$15,000
Direct Costs Incurred in Production:	$30,000
Actual Indirect costs incurred in Production:	$38,000 ($22,500 of which is fixed)
Beginning Finished Goods Inventories:	$40,000
Ending Finished Goods Inventories:	$20,000

Budgeted Fixed Factory Overhead was $20,000 based on an expected activity level of 5,000 hours. During the period, GHI employees worked a total of 6,500 direct labour hours. GHI uses a job order costing system and applies overhead costs using direct labour hours. GHI's fixed overhead during the period was:

Multiple Choice

• $4,500 Over applied

• $2,000 Over applied

• $6,000 Under applied.

• $3,500 Over applied.