Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 120% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. Direct materials Work in process Finished goods Other information Direct materials purchases Cost of goods available for sale Actual factory overhead costs The amount of underapplied or overapplied overhead is: Multiple Choice $56,000 overapplied. $56,000 underapplied. $15,000 overapplied. $15,000 underapplied. $0. January 1 December 31 $ 78,000 67,000 116,000 $ 41,000 43,000 101,000 $ 325,000 953,000 261,000