The accountant for champion brake inc. applies overhead based on machine hours. the budgeted overhead and machine hours for the year are $260,000 and 16,000, respectively. the actual overhead and machine hours incurred were $275,000 and 20,000. the cost of goods sold and inventory data compiled for the year is as follows:
direct materials. $ 50,000
cogs. 450,000
wip (units). 100,000
finished goods (units). 150,000
what is the amount of over/underapplied overhead for the year
a. $65,000
b. $50,000
c. $15,000
d. $67,000