Sheridan 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 $1600000 $1575000 Actual annual overhead cost Estimated machine hours 500000 Actual machine hours 490000 $1568000 applied and $7000 overapplied $1568000 applied and $7000 underapplied $1600000 applied and $7000 overapplied $1575000 applied and neither under-nor overapplied