Kimble Company Applies Overhead on the Basis of Machine Hours

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) $1,560,000 applied and $15,000 overapplied
B) $1,600,000 applied and $15,000 overapplied
C) $1,560,000 applied and $15,000 underapplied
D) $1,575,000 applied and neither under- nor overapplied