The following information is available for Lock-Safe Company, which produces special-order security products and uses a job order cost accounting system.

April 30 May 31

Inventories Raw materials $ 43,000 $ 52,000

Goods in process 10,200 21,300

Finished goods 63,000 35,600

Activities and information for May Raw materials purchases (paid with cash) 210,000

Factory payroll (paid with cash) 345,000

Factory overhead Indirect materials 15,000

Indirect labor 80,000

Other overhead costs 120,000

Sales (received in cash) 1,400,000

Predetermined overhead rate based on direct labor cost 70 %

Determine whether there is over or underapplied overhead.