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Minstrel Manufacturing uses a job-order costing system. During one month Minstrel purchased 198,000 of raw materials on credit; issued materials to the production of 195,000

Minstrel Manufacturing uses a job-order costing system. During one month Minstrel purchased 198,000 of raw materials on credit; issued materials to the production of 195,000 of which 30,000 were indirect. Minstrel incurred a factory payroll of 150,000, paid in cash, of which 40,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of 167,800 during the month, the amount of under- or overapplied overhead amount to ______________.

INDICATE whether MOH is OVERAPPLIED or UNDERAPPLIED.

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