Assume that the following predictions were made for 2009 for one of the plants of Milliken & Company:
| Total manufacturing overhead for the year |
$44,000,000 |
| Total machine hours for the year |
2,000,000 |
Actual results for February 2009 were as follows:
| Manufacturing overhead |
$5,480,000 |
| Machine hours |
310,000
|
As of February 1, actual overhead was underapplied by $500,000. Determine the cumulative amount of any overapplied or underapplied overhead at the end of February.