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Hayday Enterprises applies manufacturing overhead on the basis of machine-hours. At the beginning of 2019, the cost accountant estimated the following cost information for the

Hayday Enterprises applies manufacturing overhead on the basis of machine-hours. At the beginning of 2019, the cost accountant estimated the following cost information for the year:

Total DM Costs $440,000
Total DL Costs $890,000
Total MOH Costs $794,000
Total Machine Hours 2,000
Total DL Hours 90,000

At the end of 2019, Hayday Enterprises' cost accountant noted that the company used 2,500 machine hours and actual MOH was $877,000. Was manufacturing overhead under-applied or over-applied and by how much?

Provide over-application as a positive number, and under-application as a negative.

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