Lancer charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year:
Estimated (budgeted) manufacturing overhead: $1,080,000
Actual manufacturing overhead: $945,000
Estimated (budgeted) machine hours: 45,000
Actual machine hours: 31,500
Which of the following choices denotes the correct status of manufacturing overhead at year-end?