Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $339,390 for the year, and machine usage is estimated at 125,700 hours. For the year, $362,838 of overhead costs are incurred and 132,400 hours are used. Manufacturing overhead rate $2.70 per machine hour

Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.