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[The following information applies to the questions displayed below.] In December 2014, Infodeo established its predetermined overhead rate for movies produced during year 2015 by

[The following information applies to the questions displayed below.]

In December 2014, Infodeo established its predetermined overhead rate for movies produced during year 2015 by using the following cost predictions: overhead costs, $2,070,000,and direct labor costs, $460,000. At year-end 2015, the companys records show that actual overhead costs for the year are $1,987,500. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released $400,000 Movies still in production 44,000 Total actual direct labor cost$444,000

Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied.

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