Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions

A company expected its annual overhead costs to be $750,000 and machine hours to equal 100,000 hours. Actual overhead was $745,000, and actual machine hours totalled 97,000 hours.

-How much overhead was over or under applied?

A) $17,500 under applied
B) $22,500 under applied
C) $23,000 over-applied
D) $4,810 under applied