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.

	January 1	December 31
	Direct materials	$	81,000	$	44,000
	Work in process		70,000		46,000
	Finished goods		119,000		104,000
	Other information
	Direct materials purchases			$	328,000
	Cost of goods available for sale				970,000
	Actual factory overhead costs				264,000

The amount of underapplied or overapplied overhead is:

Multiple Choice

$54,000 overapplied.

$54,000 underapplied.

$12,000 overapplied.

$12,000 underapplied.

$0.