Bonita Industries applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:

Estimated annual overhead cost	$1700000
Actual annual overhead cost	$1675000
Estimated machine hours	500000
Actual machine hours	490000

$1666000 applied and $9000 underapplied

$1675000 applied and neither under-nor overapplied

$1666000 applied and $9000 overapplied

$1700000 applied and $9000 overapplied