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XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ's estimated overhead was $250,000 while the actual

XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ's estimated overhead was $250,000 while the actual overhead cost totaled $265,000. XYZ's estimated direct labor cost was $500,000 and the actual direct labor cost amounted to $510,000. For the current year, overhead was:

Group of answer choices

under-applied by $10,000

under-applied by $15,000

under-applied by $20,000

under-applied by $25,000

over-applied by $10,000

over-applied by $15,000

over-applied by $20,000

over-applied by $25,000

none of the above are correct

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