Witten Company uses a traditional cost accounting system and applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or over-application of overhead for the period:

Estimated annual overhead cost $1,200,000

Actual annual overhead cost $1,150,000

Estimated machine hours 300,000

Actual machine hours 280,000

a. $1,120,000 applied and $30,000 under-applied

b. $1,200,000 applied and $30,000 over-applied

c. $1,120,000 applied and $30,000 over-applied

d. $1,150,000 applied and neither under- nor over-applied