Yarra Fabrication estimates that its manufacturing overhead will be $2,240,000 in year 1. It further estimates that direct material costs will amount to $1,400,000. Actual manufacturing overhead costs for the year were $2,400,000. Actual direct materials costs were $1,550,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. The total applied overhead for the year was $2,480,000.

The balance in each of the inventory accounts is as follows.

Work-in-process inventory$451,000Finished goods inventory$1,066,000Cost of goods sold$6,683,000

Required:

Prepare an entry to allocate the over- or underapplied overhead.