The Thomlin Company forecasts that total overhead for the current year will be $11,056,000 with 172,000 total machine hours. Year to date, the actual overhead is $7,925,000 and the actual machine hours are 100,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

a.$2,287,500 overapplied

b.$1,525,000 underapplied

c.$1,525,000 overapplied

d.$2,287,500 underapplied