Nil Co. uses a predetermined factory overhead application rate based on direct labor cost. For the year ended December 31, Nil's budgeted factory overhead was $600,000, based on a budgeted volume of 50,000 direct labor hours, at a standard direct labor rate of $6 per hour. Actual factory overhead amounted to $620,000, with actual direct labor cost of $325,000. For the year, overapplied factory overhead was
A. $20,000
B. $25,000
C. $50,000
D. $30,000