Kenos Pte Ltd manufactures all types of custom-made furniture. It uses a job-costing system and applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totalled $2,400,000. It has a maximum capacity of 320,000 machine hours. However, it is budgeted to be able to use 75% of this capacity during this period. On 31 July, Kenos Pte Ltd has the following balances: Work in process inventory -Job 123 $18,000 -Job 124 $8,620 Raw materials inventory $13,360 Finished inventory -Job 122 $23,000 In August, the following occurred: (i)Raw materials purchased on credit $4,840 (ii) Raw materials requisitions -Job number 123 $1,020 -Job number 124 -Job number 125 $600 $2,480 $600 -Indirect materials (used in production) (iii) Machine hours, direct labour hours and wages for factory employees Job number Machine hours Labour hours Wages 123 2,400 2,320 $24,480 124 880 720 $8,640 125 3,900 2,860 $40,100 Indirect labour 600 $5,880 (iv)Other overhead incurred: Depreciation (machineries) $4,000 - Depreciation (delivery vans) $400 - Salaries (production) $10,000 - Salaries (sales and administration) $7,000 - Other factory costs $15,600 - Other selling and administration costs $9,600 (v) Spoilage & reworked costs -job number 123 -job number 124 Normal spoilage with estimated disposal selling price of $320 was incurred. Normal spoilage amounting to $70 and abnormal spoilage of $30 were incurred (vi) -job number 125 Rework cost of $52 was incurred. Job number 123 and Job number 124 were completed during the month. (vii) Job number 122 was sold for cash at a mark-up of 30% on cost while Job number 123 was sold on credit at a price that allowed the company to earn a gross profit margin of 20%. Required: Determine the over-applied or under-applied overhead for August