Babes Inc., which applies manufacturing overhead on the basis of machine hours, has provided the following data for its most recent year of operations.

Estimated manufacturing overhead $ 157,050

Estimated machine hours 4,500

Actual manufacturing overhead $ 156,000

Actual machine hours 4,580

The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.

Manufacturing overhead for the year was:

		under applied by $4,023
		over applied by $3842
		under applied by $2,999
		over applied by $2,000