Kimble Company Applies Overhead on the Basis of Machine Hours

Multiple Choice

Kimble Company applies overhead on the basis of machine hours.Given the following data compute overhead applied and the under- or overapplication of overhead for the period: $\begin{array}{lr}\text { Estimated annual overhead cost } & \$ 1,600,000 \\\text { Actual annual overhead cost } & \$ 1,575,000 \\\text { Estimated machine hours } & 400,000 \\\text { Actual machine hours } & 390,000\end{array}$

A) $1560000 applied and $15000 overapplied
B) $1600000 applied and $15000 overapplied
C) $1560000 applied and $15000 underapplied
D) $1575000 applied and neither under-nor overapplied