Yarra Fabrication estimates that its manufacturing overhead will be $2,252,800 in year 1. It further estimates that direct material costs will amount to $1,408,000. Actual manufacturing overhead costs for the year were $2,410,000. Actual direct materials costs were $1,560,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. The total applied overhead for the year was $2,496,000

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

Work-in-process inventory $ 456,500

Finished goods inventory $ 1,079,000

Cost of goods sold $ 6,764,500

Required: Prepare an entry to allocate the over- or underapplied overhead