During 2015, Michael Company applied overhead using a job-order costing system at a rate of $15 per direct labor hours. Estimated direct labor hours for the year were 150,000, and estimated overhead for the year was $2,250,000. Actual direct labor hours for 20x1 were 140,000, and actual overhead was $2,400,000.
What is the amount of under- or over-applied overhead for the year?
$300,000 under-applied
$20,000 under-applied
$300,000 over-applied
$120,000 over-applied