Use the following information to answer questions 3 and 4:

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

Manufacturing overhead costs incurred:
Indirect materials	$ 15,600
Indirect labor	$ 136,000
Property taxes, factory	$ 8,600
Utilities, factory	$ 76,000
Depreciation, factory	$ 250,700
Insurance, factory	$ 10,600
Total actual manufacturing overhead costs incurred	$ 497,500
Other costs incurred:
Purchases of raw materials (both direct and indirect)	$ 406,000
Direct labor cost	$ 66,000
Inventories:
Raw materials, beginning	$ 20,600
Raw materials, ending	$ 30,600
Work in process, beginning	$ 40,600
Work in process, ending	$ 70,600

The company uses a predetermined overhead rate to apply overhead cost to jobs based on an estimated machine-hours of 20,500. The rate for the year was $25 per machine-hour. A total of 20,300 machine-hours was recorded for the year.

What was the underapplied or overapplied overhead cost for the year?

A. $10,000 overapplied overhead

B. $10,000 underapplied overhead

C. $15,000 overapplied overhead

D. $15,000 underapplied overhead