QUESTION 5 Paulus Traders has the following information available:

01 Jul 2017 31 Dec 2017 R R

Inventory levels Material 28 000 33 000 Incomplete work 42 000 50 000 Finished goods 47 000 55 000 Costs for the period Material purchased (including indirect material) 250 000 Direct labour 225 000 Indirect labour 28 000 Indirect material used 10 000 Administrative costs 54 000 Marketing costs 63 000 Supervisory wages 17 000 Hire of factory premises 39 000 Depreciation of machinery 51 000 Revenue of the period 574 000 Manufacturing overheads are applied at 60% of direct labour. You are required to: Calculate the over- or under-applied manufacturing overheads.