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 hours400,000

Actual machine hours390,000

• $1,560,000 applied and $15,000 underapplied
• $1,575,000 applied and neither under- nor overapplied
• $1,600,000 applied and $15,000 overapplied
• $1,560,000 applied and $15,000 overapplied