SIMple Tech Pte Ltd absorbs overhead based on machine hours. At the beginning of 2021, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 2021 year-end, actual overhead totalled $650,000, and actual machine hours were 25,000. What is the amount of the overhead under-/over-absorbed?

Question 7 options:

	$150,000 under-absorbed.
	$150,000 over-absorbed.
	$25,000 under-absorbed.
	$25,000 over-absorbed.