The following information is for a manufacturer that uses job-order costing and applies manufacturing overhead cost to products based on machine-hours.

Before the year began the company estimated $680,000 of total manufacturing overhead costs would be incurred and 85,000 machine-hours would be used. Those estimates were used to compute the predetermined overhead rate.

Actual hours and costs for the year were:

Machine-hours		76,000
Manufacturing overhead cost	$	637,000

Required:

1. Determine the underapplied or overapplied overhead for the year.