Offensive players cheering their team in foul territory

[spots101]

Regional game tonight: High throw from right field to third goes into home field dugout. Most of the players are out in foul territory cheering on their teammates. I couldn't see if the ball actually hit any of them or not. Anyway, ump gives 2 base award. The question is, should the ump penalize the players for being in foul territory or not (seeing as how this kind of thing happens a lot, the cheering that is) especially since the dugout had no fence right in front of it. If there is a penalty does the ball have to actually hit a kid or just in close proximity since they are in foul territory? Either way what would you call? Thanks for your help.