Keystone Company applies overhead on the basis of machine hours, and reported the following data.

Estimated annual overhead cost	$2,250,000
Actual annual overhead cost	$2,227,500
Estimated machine hours	300,000
Actual machine hours	295,000

Compute the amount of overhead under-applied or over-applied for the period

Group of answer choices

$15,000 under-applied

$22,500 under-applied

$22,500 over-applied

$15,000 over-applied