The following information was gathered for the Milestone Company for the year. The annual flexible overhead budget is expected to be $150,000 of fixed costs and $5 per machine hour. The budgeted number of machine hours for the coming year is 30,000. Actual machine hours incurred equal 28,000 hours, and actual overhead cost total $295,000.

The amount of over/under applied overhead is

a	$5,000 under applied

b	$5,000 over applied

c	$15,000 under applied

d	$15,000 over applied

e	$155,000 under applied