Estimated annual overhead cost Vaughn Company applies overhead on the basis of machine hours. Given the following data, what is the overhead applied and the under- or overapplication of overhead for the period? Actual annual overhead cost Estimated machine hours Actual machine hours OOOO $1780000 $1565000 450000 225000 $1565000 applied and neither under-nor overapplied $1780000 applied and $675000 overapplied $890000 applied and $675000 underapplied $890000 applied and $675000 overapplied