Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $54,600 and its total manufacturing overhead cost to be $103,740. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement.

Predetermined Overhead Rate

190

% of Direct Labor Cost

Raw Materials Inventory					Work in Process Inventory
Beginning Balance	13,800	79,800			Beginning Balance	29,700	200,170
Purchases	94,300				Direct Materials	68,800
Ending Balance	28,300				Direct Labor	$41,300
					Applied Overhead	78,470
					Ending Balance	18,100
Finished Goods Inventory					Cost of Goods Sold
Beginning Balance	40,600	191,770			Unadjusted Cost of Goods Sold	191,770
Cost of Goods Completed	200,170				Adjusted Cost of Goods Sold	167,600
Ending Balance	49,000
Sales Revenue					Manufacturing Overhead
		310,000			Indirect Materials	11,000	78,470	Applied Overhead
					Indirect Labor	13,100
					Factory Depreciation	12,200
					Factory Rent	6,700
					Factory Utilities	2,100
					Other Factory Costs	9,200
					Actual Overhead	54,300
Selling, General, and Administrative Expenses
Adm. Salaries	27,300
Office Depreciation	18,600
Advertising	13,100
Ending Balance	59,000

Required:

3. Compute over- or underapplied overhead.