Rivera Company applies manufacturing overhead to jobs on the basis of direct labor cost. Overhead costs are expected (budgeted) to total $240,000 for the year, and direct labor cost is estimated at $240,000. For the year, $185,000 of overhead costs are incurred and the actual direct labor cost was $210,000.

Compare the amount of overhead that was applied during the year with the actual incurred overhead costs. What is the amount of under - or overapplied overhead at December 31? (please identify both the amount and that it was under-applied or over-applied)