Murky Hues Corporation uses a normal costing system and a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs. At the beginning of the year, the Corporation estimated its total manufacturing overhead cost at $351,000 and its direct labor costs at $78,000. The actual overhead cost incurred during the year was $345,000 and the actual direct labor costs incurred on jobs during the year was $77,000.

Calculate the amount of over or under applied overhead for the year. Round all calculations to two decimal points