Industries' cost accountant is preparing the budget reports at the end of the year. At the beginning of the year the manufacturing overhead budget was set for $1,600,000. 60% of this budget is for the Assembly department and 40% is for the Finishing department.

The budgeted allocation bases are as follows:

Assembly department: 40,000 direct labour hours Finishing department: 64,000 machine hours

The following actual figures were taken from the company records at the end of the year:

Assembly department:

42,000 direct labour hours

$996,000

Finishing department

62,800 machine hours

$670,000

What is the ending balance in the manufacturing overhead account in the Assembly department and is it over- or underapplied?