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 $3700000

Actual annual overhead cost $3670000

Estimated machine hours 500000

Actual machine hours 495000

$3700000 applied and $7000 overapplied

$3663000 applied and $7000 overapplied

$3663000 applied and $7000 underapplied

$3670000 applied and neither under- nor overapplied