PROBLEM 2-15. Applying Overhead in a Service Company [LO 5, 6] The following cost data relate to the office overhead costs of the Charles Wright Tax Preparation Company during the just-completed year:

Overhead costs incurred:
Office rent	$ 25,000
Office supplies	6,000
Utilities, office	15,000
Salary, office manager	55,000
Salary, receptionist	35,000
Depreciationoffice equipment	10,000
Software licensing fees	24,000
Other miscellaneous expenses	30,000
Total overhead costs	$200,000

The company uses a predetermined overhead rate to apply overhead cost to each tax job. The rate for the year was $6 per tax-preparer hour. A total of 35,000 tax preparer hours was recorded for the year.

Compute the amount of uder-or overapplied overhead cost for the year