31. (4 points) Zhao Company uses a predetermined overhead rate to allocate overhead based on Direct Labor cost. This year's budget includes Overhead equal to $500,000 and Direct Labor cost of $625,000. This year's actual Direct Labor cost equaled $600,000 and the actual Overhead incurred equaled $475,000. Calculate the over/under applied Overhead for the year. Clearly indicate whether overhead is Over or Under (O/U) applied. Show your calculations