The Owens Company uses the machine hour method of applying factory overhead to production.The budgeted factory overhead last year was $200,000,and there were 40,000 machine hours budgeted.Actual machine hours incurred during the period were 38,000,and actual factory overhead was $215,000.What was the amount of under- or overapplied factory overhead?
A)$10,000 underapplied
B)$15,000 underapplied
C)$25,000 underapplied
D)$10,000 overapplied

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The Answer of The Owens Company uses the machine hour method of applying factory overhead to production.The budgeted factory overhead last year was $200,000,and there were 40,000 machine hours budgeted.Actual machine hours incurred during the period were 38,000,and actual factory overhead was $215,000.What was the amount of under- or overapplied factory overhead?
A)$10,000 underapplied
B)$15,000 underapplied
C)$25,000 underapplied
D)$10,000 overapplied

The Owens Company Uses the Machine Hour Method of Applying