Answer:
underapplied by 2,250
Explanation:
we will distribute the expected cost of overhead ovwer the cost driver. In this case, machine hours:
255,000 / 100,000 = 2.55
Then we multiply thew rate by the amount of actual hours:
105,000 x 2.55 = 267,760
We compare with the appleid overhead:
267,760 - 270,000 = -2,250
As the actual overehad was higher than applied overhead the overhead was underapplied