Carey Company applies manufacturing overhead costs to products as a percentage of direct labor dollars. Estimated and actual values of manufacturing overhead and direct labor costs are summarized here:

	Estimated		Actual
Direct labor cost	$	600,000	$	550,000
Manufacturing overhead		900,000		850,000

Required:

1.	Compute over- or underapplied overhead.

Manufacturing Overhead

Underapplied by

Fairfield Company