Barnes Company Applies Overhead on the Basis of Machine Hours

Multiple Choice

Barnes 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: $\begin{array}{lr}\text { Estimated annual overhead cost } & \$ 3,000,000 \\\text { Actual annual overhead cost } & \$ 2,970,000 \\\text { Estimated machine hours } & 300,000 \\\text { Actual machine hours } & 295,000\end{array}$

A) $2950000 applied and $20000 overapplied
B) $3000000 applied and $20000 overapplied
C) $2950000 applied and $20000 underapplied
D) $2970000 applied and neither under- nor overapplied