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) $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