Exercise 3-12 Applying Overhead; Cost of Goods Manufactured [LO3-2, LO3-6, LO3-7]

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

Manufacturing overhead costs incurred:
Indirect materials	$	16,900
Indirect labor		149,000
Property taxes, factory		9,900
Utilities, factory		89,000
Depreciation, factory		316,900
Insurance, factory		11,900
Total actual manufacturing overhead costs incurred	$	593,600
Other costs incurred:
Purchases of raw materials (both direct and indirect)	$	419,000
Direct labor cost	$	79,000
Inventories:
Raw materials, beginning	$	21,900
Raw materials, ending	$	31,900
Work in process, beginning	$	41,900
Work in process, ending	$	71,900

The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $28 per machine-hour. A total of 21,600 machine-hours was recorded for the year.

Required:

1.	Compute the amount of underapplied or overapplied overhead cost for the year.