Midterm Company uses a normal, traditional (functional) cost system and applies overhead to production based on machine hours. The accounting system provided the following information. Estimated overhead cost $150,000 Actual overhead cost $140,000 Estimated machine hours 20,000 hours Actual machine hours 25,000 hours Determine the overhead variance for the period. $47,500 overapplied $10,000 underapplied $10,000 overapplied $37,500 overapplied