Gonzales Company uses a job-order costing system that applies manufacturing overhead costs to jobs on the basis of machine-hours. The predetermined overhead rate is $4.60 per machine hour. During the year the company incurred the following manufacturing overhead costs: Indirect materials Indirect labor Utilities Depreciation Rent $42,500 108,000 12,000 30,000 10,000 The company also incurred the following costs during the year: Direct materials Direct labor $300,000 120,000 The company incurred 44,300 in labor hours during the year. What is the amount of underapplied or overapplied overhead for the year?