can you please help understand this concept? thank you!

Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour Actual direct-labor cost: 80,000 hours at $17.50 per hour Budgeted manufacturing overhead: $997,500 Actual selling and administrative expenses: $430,000 2. Calculate the overapplied or underapplied overhead for the year: Note: Round your intermediate calculations to 2 decimal places