Ravsten Company uses a job-order costing system.

The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 35,000 machine-hours and incur $183,750 in manufacturing overhead cost. The following transactions occurred during the year:

a. Raw materials requisitioned for use in production, $309,000 (70% direct and 30% indirect).

b. The following costs were incurred for employee services:

Ravsten Company uses a job-order costing system. The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 35,000 machine-hours and incur $183,750 in manufacturing overhead cost. The following transactions occurred during the year: a. Raw materials requisitioned for use in production, $309,000 (70% direct and 30% indirect). b. The following costs were incurred for employee services: Direct labor Indirect labor Sales commissions Administrative salaries $ 180,000 $ 38,000 $ 30,000 $ 45,000 c. Heat, power, and water costs incurred in the factory, $67,000. d. Insurance costs, $30,000 (80% relates to factory operations, and 20% relates to selling and administrative activities). Ee. Advertising costs incurred, $70,000. f. Depreciation recorded for the year, $80,000 (75% relates to factory operations, and 25% relates to selling and administrative activities). Eg. The company used 60,000 machine-hours during the year. h. Goods that cost $500,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. Ei. Sales for the year totaled $740,000. The total cost to manufacture these goods according to their job cost sheets was $495,000. Required: 1. Determine the underapplied or overapplied overhead for the year. (Round predetermined overhead rate to 2 decimal places.)