Applied vs. Actual Manufacturing Overhead Kubal Inc. applies overhead based on machine hours. Kubal reports the following for the year just ended: Budgeted overhead for the year $300,000 Budgeted machine hours 2,000 Actual overhead for the year $325,000 Actual machine hours 2,400 What is the amount of over- or under-applied overhead for the year? $ 25,000 over-applied