Aponi Products, Inc. uses a job$-$order costing system. The company$$s inventory balances on August $1,$ the start of its fiscal year, were as follows:

Raw materials $ $51,500$

Work in process $48,500$

Finished goods $33,500$

During the year, the following transactions were completed:

Raw materials were purchased on account, $$194,000.$

Raw materials were issued from the storeroom for use in production, $$214,000(80\%$ direct and $20\%$ indirect$).$

Employee salaries and wages were accrued as follows: direct labour, $$214,000$; indirect labour, $$88,500$; selling and administrative salaries, $$144,000.$

Utility costs were incurred in the factory, $$83,500.$

Advertising costs were incurred, $$78,500.$

Prepaid insurance expired during the year, $$25,400(75\%$ related to factory operations, and $25\%$ related to selling and administrative activities$).$

Depreciation was recorded, $$164,000(80\%$ related to factory assets, and $20\%$ related to selling and administrative assets$).$

Manufacturing overhead was applied to jobs at the rate of $150\%$ of direct labour cost.

Goods that cost $$751,100$ to manufacture according to their job cost sheets were transferred to the finished goods warehouse.

Sales for the year totalled $$1,057,400$ and were all on account. The total cost to manufacture these goods according to their job cost sheets was $$745,000.$Prepare T$-$accounts for raw materials, work in process, finished goods, manufacturing overhead and cost of goods sold. Post the appropriate parts of your journal entries to these T$-$accounts. Compute the ending balance in each account. $($Do not forget to enter the beginning balances in the inventory accounts.$)$

$3-$a$.$ Is manufacturing overhead underapplied or overapplied for the year?

Manufacturing overhead is