Assume that actual overhead consisted of $20,000 for indirect labor,

$20,000 for indirect material, and $15,000 for depreciation of factory equipment. Based on the preset rates, $65,000 of overhead was applied to work in process. Which of the following statements is true?

There will be a 5000 debit balance in factory overhead
There will be a 10000 credit balance in factory overhead
Overhead is underapplied
All of the above
None of these