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: $$\begin{array} { l r } \text { Estimated annual overhead cost } & \$ 1,600,000 \\\text { Actual annual overhead cost } & \$ 1,540,000 \\\text { Estimated machine hours } & 400,000 \\\text { Actual machine hours } & 380,000\end{array}$$

A) $1,520,000 applied and $20,000 overapplied
B) $1,600,000 applied and $20,000 overapplied
C) $1,520,000 applied and $20,000 underapplied
D) $1,463,000 applied and neither under- nor overapplied