Kimble Company 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

$1,600,000

Actual annual overhead cost

$1,575,000

Estimated machine hours

400,000

Actual machine hours

390,000

a. $1,560,000 applied and $15,000 overapplied

b. $1,600,000 applied and $15,000 overapplied

c.

$1,560,000 applied and $15,000 underapplied

d.

$1,575,000 applied and neither under-nor overapplied