The Brown Bottle Company (BBC) uses a job-order costing system. Before disposition of the underapplied or over-applied overhead, selected year-end balances from BBC's accounting records were:
Cost of goods sold............................. $720,000
Raw material inventory ...........................36,000
Work-in-process inventory ......................54,000
Finished goods inventory ........................90,000
Required:
If the adjusted ending balance (after proration of underapplied or overapplied overhead) of cost of goods sold is $757,500, what is the underapplied or overapplied overhead for the period?