Brainpower Pty Ltd is an advertising agency that uses a job costing system. Brainpower applies overhead to jobs based on direct professional labour hours. At the beginning of the year, overhead was estimated to be $75000, direct professional labour hours were estimated to be 15000, and direct professional labour cost was projected to be $225000. During the year, Brainpower incurred actual overhead of $80000, actual direct labour hours of 14500 and actual direct labour cost of $222000. What was Brainpower's overapplied or underapplied overhead during the year?

Select one:

a.$5000 overapplied

b.$5000 underapplied

c.$7500 underapplied

d.$7500 overapplied