A company forecasts total overhead for the month is $2,000 and total machine hours is 25 hours. If actual overhead is $1,500 and actual machine hours is 30 hours, what is the

under/over-applied overhead?

a.Over-applied by $600

b. Under-applied by $600

c.Over-applied by $900

d. Under-applied by $900

e. None of the above

Please explain why