Durham Company uses a job - order coating system. The following transactions book place last year: Raw materials requisitioned for use in production, $45,000(80% direct and 20% indirect). Factory utility costs incurred, $ 15, 100. Depreciation recorded on plant and equipment, $29,000. Three-fourths of the depreciation relates to factory equipment, and the remainder relates to selling and administrative equipment. Costs for salaries and wages were incurred as follows: Insurances costs incurred $4,000 (80% relates to factory operations, and 20% relation to selling and administrative activities). Miscellaneous selling and administrative expenses incurred, $ 18, 500. Manufacturing overhead was applied to production. This company apples overhead on the basis of 100% of direct labor cost. Goods that cost $135,000 to manufacture according to their job cost sheets were transformed to the finished goods warehouse. Goods that has cost $125,000 to manufacture according to their job cost sheets were sold for $210,000. Required: Determine the underapplied or overapplied overhead for this year. Overhead underapplied $ 3, 950