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A company is an Advertising Agency that uses a job-order cost system. The company applies overhead to jobs used on direct professional labor hours. At the beginning of the year overhead was estimated to be $75,000, direct professional labor hours were estimated to be 15,000 and direct professional labor cost was projected to be $225,000. During the year, the company incurred actual overhead of $80,000, actual direct labor hours of 14,500, and actual direct labor cost of $222,000. What was the company's over or underapplied overhead during the year?


A. $5,000 underapplied


B. $5,000 overapplied


C. $7,500 underapplied


D. $7,500 overapplied


E. $3,000 overapplied

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