The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 27,000 machine-hours and incur $130,950 in manufacturing overhead cost. The following transactions occured during the year a. Raw materials requisitioned for use in production, $301,000 (70% direct and 30% indirect). b. The following costs were incurred for employee services: Direct labor Indirect labor Sales commissions Administrative salaries $ 172,000 $ 30,000 $ 22,000 $ 37,000 c. Heat, power, and water costs incurred in the factory, $48,000. d Insurance costs $22,000 80% relates to factory operations, and 20% relates to selling and administrative activities). e. Advertising costs incurred, $62,000 f. Depreciation recorded for the year, $72,000 (75% relates to factory operations, and 25% relates to selling and administrative activities) g. The company used 52,000 machine-hours during the year. h. Goods that cost $492,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse i. Sales for the year totaled $724,000. The total cost to manufacture these goods according to their job cost sheets was $487,000. Required 1. Determine the underapplied or overapplied overhead for the year. (Round predetermined overhead rate to 2 decimal places.). 19