Johnson Company used a normal costing system during 2019 with direct labor hours as the cost of driver used for the applying overhead. At the beginning of 2019 manufacturing overhead was budegeted to be $500000. Johnson also budgeted 20000 labour hours. Actuall overhead for the year was $480,000 and the actual number of lobor hours worked was 22000. Determine the dollar amount of everapplied or underapplied manufacturing overhead for 2020.

Determine the dollar amount of overapplied or underapplied manufacturing overhead of 2020 and indicate if it was underapplied or over applied.