The Edge Company uses a predetermined overhead rate of $5 per direct labor hour. In December, actual overhead amounted to $650,000 and actual direct labor hours were 132,000. For the month, overhead was:
a. $50,000 overapplied.
b. $50,000 underapplied.
c. $10,000 overapplied.
d. $10,000 underapplied.