The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $25 per machine-hour. A total of 20,300 machine-hours was recorded for the year.

Required:

1.	Compute the amount of underapplied or overapplied overhead cost for the year.

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

Manufacturing overhead costs incurred:
Indirect materials	$	15,600
Indirect labor		136,000
Property taxes, factory		8,600
Utilities, factory		76,000
Depreciation, factory		250,700
Insurance, factory		10,600
Total actual manufacturing overhead costs incurred	$	497,500
Other costs incurred:
Purchases of raw materials (both direct and indirect)	$	406,000
Direct labor cost	$	66,000
Inventories:
Raw materials, beginning	$	20,600
Raw materials, ending	$	30,600
Work in process, beginning	$	40,600
Work in process, ending	$	70,600