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

Group of answer choices

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

$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