The following cost data relate to the office overhead costs of the Starlight Tax Preparation Company during the just completed year:

The company uses a predetermined overhead rate to apply overhead cost to each tax job. The rate for the year was \($5\) per tax-preparer hour. A total of 32,000 tax preparer hours was recorded for the year.
Compute the amount of under- or overapplied overhead cost for the year.

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Overhead costs incurred: Office rent Office supplies Utilities, office $ 24,000 4,000 12,000 Salary, office manager 50,000 Salary, receptionist 32,000 Depreciation-office equipment 6,000 Software licensing fees 12,000 Other miscellaneous expenses 20,000 Total overhead costs $160,000