Barnes Company Applies Overhead on the Basis of Machine Hours

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) $2,950,000 applied and $20,000 overapplied
B) $3,000,000 applied and $20,000 overapplied
C) $2,950,000 applied and $20,000 underapplied
D) $2,970,000 applied and neither under- nor overapplied