XYZ Company applies overhead to jobs usingdirect labor costas an activity. For the

current year, XYZ's estimated overhead was $600,000 based on an expected 50,000

direct labor hours to be worked, with direct laborers expected to be paid $6 per hour.

For the current year, actual overheadcoststotaled $620,000 and actual direct labor

cost totaled $325,000. For the year, overhead was:

under-applied by $20,000

over-applied by $22,000

under-applied by $30,000

over-applied by $20,000

under-applied by $22,000

over-applied by $30,000

none of the above are correct

50,000*6= 300000 600,000/300000 = 2%

PDR x ACTIVITY = Applied overhead

How do I find the activity level amount in this scenario?

Other wise I had none of the above as the answer.