1. Stromboli 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 $1,800,000

   Actual annual overhead cost $1,575,000

   Estimated machine hours 400,000

   Actual machine hours 380,000

   	a.	$1,800,000 applied and $225,000 overapplied
   	b.	$1,710,000 applied and $135,000 overapplied
   	c.	$1,800,000 applied and $225,000 underapplied
   	d.	$1,710,000 applied and $135,000 underapplied