Star Videos, Inc., produces short musical videos for sale to retail outlets. The companys balance sheet accounts as of January 1 are given below.

Star Videos, Inc.
Balance Sheet
January 1
Assets
Cash				$	82,600
Accounts receivable					97,600
Inventories:
Raw materials (film, costumes)	$	42,800
Videos in process		56,600
Finished videos awaiting sale		79,800			179,200
Prepaid insurance					10,050
Studio and equipment (net)					548,000
Total assets				$	917,450
Liabilities and Stockholders Equity
Accounts payable				$	188,000
Retained earnings					729,450
Total liabilities and stockholders equity				$	917,450

Because the videos differ in length and in complexity of production, the company uses a job-order costing system to determine the cost of each video produced. Studio (manufacturing) overhead is charged to videos on the basis of camera-hours of activity. The companys predetermined overhead rate for the year ($40 per camera-hour) is based on a cost formula that estimated $280,000 in manufacturing overhead for an estimated allocation base of 7,000 camera-hours. Any underapplied or overapplied overhead is closed to cost of goods sold. The following transactions were recorded for the year:

1. Film, costumes, and similar raw materials purchased on account, $221,000.
2. Film, costumes, and other raw materials issued to production, $259,000 (85% of this material was considered direct to the videos in production, and the other 15% was considered indirect).
3. Utility costs incurred (on account) in the production studio, $81,200.
4. Depreciation recorded on the studio, cameras, and other equipment, $93,200. Three-fourths of this depreciation related to actual production of the videos, and the remainder related to equipment used in marketing and administration.
5. Advertising expense incurred (on account), $161,000.
6. Salaries and wages paid in cash as follows:

Direct labor (actors and directors)	$	98,200
Indirect labor (carpenters to build sets, costume designers, and so forth)	$	83,500
Administrative salaries	$	110,000

1. Prepaid insurance expired during the year, $9,100 (70% related to production of videos, and 30% related to marketing and administrative activities).
2. Miscellaneous marketing and administrative expenses incurred (on account), $14,150.
3. Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,250 camera-hours of activity during the year.
4. Videos that cost $580,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment.
5. Sales for the year totaled $1,100,000 and were all on account.
6. The total cost to produce the videos that were sold according to their job cost sheets was $626,050.
7. Collections from customers during the year totaled $1,050,000.
8. Payments to suppliers on account during the year, $529,000.
9. Underapplied or overapplied overhead $__?__.