Cardinal Enterprises manufactures products to customer specifications and uses a job costing system.Cardinal applies manufacturing overhead costs at a rate of 125% of direct labor costs. Here are data regarding 20Y5:

Jan 1

Raw materials inventory

$83,000

Work in process inventory

$72,000

Finished goods inventory

$121,000

Dec 31

$46,000

$48,000

$106,000

During 20Y5, purchases of raw materials were $330,000, actual manufacturing overhead costs were $266,000, and the cost of goods manufactured was $841,000. All raw materials are direct materials.

What is the amount of underapplied or overapplied overheat?

-$40,000 overapplied

-$24.000 overapplied

-$16,000 underapplied

-$66,000 underapplied

-None of the above