XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ's estimated overhead was $500,000 while the actual overhead cost totaled $510,000. XYZ's estimated direct labor cost was $250,000 and the actual direct labor cost amounted to $265,000.

For the current year, overhead was:

A. under-applied by $10,000 B. under-applied by $15,000 C. under-applied by $20,000 D. under-applied by $25,000 E. over-applied by $10,000 F. over-applied by $15,000 G. over-applied by $20,000 H. over-applied by $25,000 I. none of the above are correct