Durham Company uses a job-order costing system. The following transactions took place last year a. Raw materials requisitioned for use in production. $46.000 (75% direct and 25% indirect). b. Factory utility costs incurred, $15.200 Depreciation recorded on plant and equipment, $29.200. Three-fourths of the depreciation relates to factory equipment, and the remainder relates to selling and administrative equipment d Costs for salaries and wages were incurred as follows: 46,000 Direct labo S 18,600 ndirect labo 10,600 Sales commissions S 31,000 Administrative salaries e Insurance costs incurred, $4,200 75% relates to factory operations, and 25% relates to selling and administrative activities). f. Miscellaneous selling and administrative expenses in $18.600. curred, g. Manufacturing overhead was applied to production. The company applies overhead on the basis of 140% of direct labor cost. h. Goods that cost $136,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. i. Goods that had cost $126,000 to manufacture according to their job cost sheets were sold for $212,000. Required: 1. Determine the underapplied or overapplied overhead for the year. Overhead underapplied 5 5,950