5

On January 1, V o corp. estimated its total overhead for the upcoming year to be $300,000 and its total machine hours to be 12.000. O's actual machine hours for the year were 26,810. The company uses job-order costing with machine hours as the allocation base, At the end of the year, the 's books reveal following actual results: Advertising Expense $9.400 SID Direct Labor $29.500 Purchases of Raw Materials $15,900 Rent, Factory Building $50,300 Indirect Labor $39,900 Sales Commissions $8.300 Utilities, Factory $11,200 Maintenance, Factory Equipment $5,100 CEO Salary $5,800 Depreciation, Factory Equipment $14.400 Q. What is amount of over- or under-applied OH? (Enter just the amount.) A. $