Tonys Textiles uses a predetermined factory overhead rate based on machine-hours. For May, Tonys budgeted overhead was

Question:

Tony’s Textiles uses a predetermined factory overhead rate based on machine-hours. For May, Tony’s budgeted overhead was $210,000 based on a budgeted volume of 35,000 machine-hours. Actual overhead amounted to $227,500 with actual machine-hours totaling 38,500.

Required
What was over- or under-applied manufacturing overhead in May?