The following data were taken from the records of Sunland Enterprises, a Canadian manufacturer that uses a normal job$-$order costing system:

Work in Process, December $1$

Job Number

$70$

$75$

$80$

Direct materials

$$1,940$

$$2,590$

$$1,620$

Direct labour

$1,300$

$2,590$

$650$

Applied overhead

$650$

$1,460$

$490$

Total

$$3,890$ total of job $70$

$$6,640$ total of job $75$

$$2,760$ total of job $80$

During December, the company worked on jobs numbered $70$ through $90$ and incurred the following costs:

Job Number

$70$

$75$

$80$

$85$

$90$

Direct materials

$$650$

$$970$

$$1,300$

$$1,460$

$$1,620$

$$6,000$ total

Direct labour

$$810$

$$1,620$

$$3,240$

$$2,430$

$$6,480$

$$14,580$ total

Direct labour hours

$50$

$110$

$220$

$160$

$430$

$970$ total

Additional information:

$1.$Total overhead costs are applied to jobs on the basis of direct labour hours worked. At the beginning of the year, the company estimated that total overhead costs for the year would be $$162,000,$ and the total labour hours worked would be $13,500.$

$2.$ The balance in the Departmental Overhead Control account on December $1$ was $$172,810.$ Actual direct labour hours for the previous $11$ months $($January through November$)$ were $12,150.$

$3.$ There were no jobs in finished goods on December $1.$epreciation $($plant and equipment$)$

$2,690$

Factory supplies

$1,620$

Sales staff salaries

$9,940$

Utilities $($Factory$)$

$1\mathrm{.}940$

Administrative expenses

$10\mathrm{.}260$

$$38,550$

$5.$ The company writes off all under$-$or over$-$applied overhead to Cost of Goods Sold at the end of the year.

$6$ Jobs $70,80,85,$ and $90$ were completed during December. Only Job $90$ remained in finished goods on December $31.$

$7.$ The company charges its customers $250\%$ of total manufacturing cost.

$8.$ Cost of goods sold to December $1$ was $$38\mathrm{.}550.$ December $1$ was $$172,810.$ Actual direct labour hours for the previous $11$ months $($January through November$)$ were $12,150.$

$3.$ There were no jobs in finished goods on December $1.$

C$)$

Calculate the under$-$or over$-$applied overhead for the year.

Overhead

$

What effect would this amount have on net income?

Net income will be $$ by $ $$