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Vandy Company uses a predetermined overhead rate based on direct labor-hours to apply factory overhead...

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Accounting

Vandy Company uses a predetermined overhead rate based on direct labor-hours to apply factory overhead to jobs. For the month of November, Vandy's estimated factory overhead cost was $400,000 based on an estimated activity level of 100,000 direct labor-hours. Actual overhead amounted to $425,000 with actual direct labor-hours totaling 110,000 for the month. How much was the overapplied or underapplied overhead?

Group of answer choices

$25,000 underapplied

$25,000 overapplied

$15,000 underapplied

$15,000 overapplied

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