Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below January 1December 31 Direct materials Work in process Finished goods Other information Direct materials purchases Cost of goods available for sale Actual factory overhead costs 77,000 40,000 42,000 115,000100,000 points 66,000 Skipped $324,000 950,000 260,000 The amount of underapplied or overapplied overhead is: Multiple Choice 23 $60,000 underapplied. points $o. 10,000 underapplied. $10,000 overapplied $60,000 overepplied