A company uses an overhead absorption rate of $3.50 per machine hour, based on 32,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to $108,875 and 30,000 machine hours were recorded on actual production.By how much was the total overhead under or over absorbed for the period?

A. Under absorbed by $3,875
B. Under absorbed by $7,000
C. Over absorbed by $3,875
D. Over absorbed by $7,000