Cost Accounting Question - Would appreciate help

[Anfal Shabbir]

u have computed the correct rate, then apply it to actual production i.e 2500, the answer will be 12500, this 12500 we called as budgeted allowance for actual output

over /under applied = actual - applied ;
here actual = 15000, and applied = 12500 , so there will be 2500 under applied variance