Avion Industries makes an assortment of aircraft parts. The company allocates overhead based on direct labor costs in euros (DL€). At the beginning of the year, the company estimated that overhead costs would be €400,000 and direct labor costs would be €250,000. The application rate was estimated to be €400,000/€250,000, or €1.60/DL€.

The actual overhead costs were €420,000 and the actual direct labor costs €210,000. A batch of parts that used €10,000 of direct labor was completed during the year. It was sold based on contract terms of actual costs plus 20 percent. The original invoice was sent to the customer using the budgeted application rate to calculate the overhead portion of the contract.

How much higher would the invoice have been using actual overhead and direct labor costs?