Woodman Company applies factory overhead on the basis of direct labor hours. Budget and actual data for direct labor and overhead for the year are as follows:

Budget Actual

Direct labor hours 30,000 32,000

Factory overhead costs $90,000 $88,000

The required journal entry to record actual overhead costs for the year is:

• A.

  underapplied by $2,000.

• B.

  overapplied by $2,000.

• C.

  underapplied by $4,000.

• D.

  overapplied by $8,000.