Pack, Inc. applies manufacturing overhead on the basis of machine hours. The following estimates were used for the current year: Estimated Machine Hours Estimated Manufacturing Overhead 200,000 $1,000,000 Actual machine hours were 202,000 and actual manufacturing overhead was $1,005,000. What was Pack's over-or under-applied overhead for the year and what was its effect on cost of goods sold (prior to adjustment)? Overhead was: Effect on Cost of Goods Sold (CGS) O2 $10,000 under-applied Under-stated Ob. $ 5,000 over-applied Over-stated . $10,000 over-applied Over-stated O d. $ 5,000 under-applied Under-stated Oe $ 2,000 over-applied Under-stated