The following information relates to Burgundy for July 2020: Actual direct labour costs $50,000 Actual direct labour rate per hour $10 Factory overhead rate per direct labour hour $15 Factory overhead incurred $80,000 As part of the cost planning and cost control of operations and activities, management is concerned regarding the applied overhead rate used.

Considering the company had budgeted a factory overhead of $90,000 and 6,000 hours of direct labour, identify whether there is a numerator and/or denominator reason leading to an underapplied or overapplied overhead, specifically for Burgundy.?