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Pepper Corporation is a manufacturer that uses job- order costing. The company closes out any over- applied or under-applied manufacturing overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Estimated total manufacturing overhead at the beginning of the year $481,250 Actual total manufacturing overhead cost incurred $644,000 Estimated direct labor-hours at the beginning of the year 35,000 hours Actual direct labor-hours 40,000 hours Predetermined overhead rate $13.75/DL hour Manufacturing overhead is over-applied or under- applied by: $94.000 Over-applied $162.750 Over-applied $162.752 Under-applied $94.000 Under-applied