Chap 3 Q3

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

Manufacturing overhead costs incurred:
Indirect materials	$	16,800
Indirect labor		148,000
Property taxes, factory		9,800
Utilities, factory		88,000
Depreciation, factory		295,300
Insurance, factory		11,800
Total actual manufacturing overhead costs incurred	$	569,700
Other costs incurred:
Purchases of raw materials (both direct and indirect)	$	418,000
Direct labor cost	$	78,000
Inventories:
Raw materials, beginning	$	21,800
Raw materials, ending	$	31,800
Work in process, beginning	$	41,800
Work in process, ending	$	71,800

The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $27 per machine-hour. A total of 21,500 machine-hours was recorded for the year.

Required:

1.	Compute the amount of underapplied or overapplied overhead cost for the year.