CompuFurn, Inc., manufactures furniture for computer work stations. CompuFurn uses a job-order costing system and employs absorption costing. ComuFurns work-in-process inventory on November 30 consisted of the following jobs.

Job No.	Description	Units		Accumulated Cost
CC723	Computer caddy		20,000				$	900,000
CH291	Chair		15,000					431,000
PS812	Printer stand		25,000					260,000
Total							$	1,591,000

On November 30, the companys finished-goods inventory, which is evaluated using the first-in, first-out (FIFO) method, consisted of four items.

Item	Quantity and Unit Cost		Accumulated Cost
Computer caddy		7,500		units	@	$	64		each			$	480,000
Chair		19,400		units	@	$	35		each				679,000
Printer stand		21,000		units	@	$	55		each				1,155,000
Desk		11,200		units	@	$	102		each				1,142,400
Total												$	3,456,400

At the end of November, the balance in CompuFurns Materials Inventory account, which includes both raw materials and purchased parts, was $668,000. Additions to and requisitions from the materials inventory during the month of December included the following.

Additions	Raw Materials		Purchased Parts
Purchases		$	242,000					$	396,000
Requisitions:
Job CC723			51,000						104,000
Job CH291			3,000						10,800
Job PS812			125,000						87,000
Job DS444 (5,000 desks)			65,000						187,000

CompuFurn applies manufacturing overhead on the basis of machine hours. The companys manufacturing overhead budget for the year totaled $4,500,000. The company planned to use 900,000 machine hours during this period, which is the firms estimated practical capacity. Through the first 11 months of the year, a total of 830,000 machine hours were used, and actual manufacturing overhead amounted to $4,140,000. During the month of December, machine hours and labor hours consisted of the following:

Account	Machine Hours		Labor Hours		Labor Cost
CC723			12,000						11,600					$	122,400
CH291			4,400						3,600						43,200
PS812			19,500						14,300						200,500
DS444			14,000						12,500						138,000
Indirect labor									3,000						29,400
Supervision															57,600
Total			49,900						45,000					$	591,100

The jobs completed in December and the unit sales for that month are as follows:

Job No.	Production Items	Quantity Completed	Item	Quantity Shipped
CC723	Computer caddy		20,000		Computer caddy		17,500
CH291	Chair		15,000		Chair		21,200
DS444	Desks		5,000		Printer stand		18,000
					Desk		6,000

2. Calculate the dollar balance in CompuFurns Work-in-Process Inventory account as of December 31. 3. Calculate the cost of the chairs in CompuFurns Finished-Goods Inventory as of December 31.

4. Actual manufacturing overhead incurred in December amounted to $252,000. Calculate CompuFurns overapplied or underapplied overhead for the year.