The following cost data relate to the office overhead costs of the Charles Wright Tax Preparation Company during the just-completed year:
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Overhead costs incurred:
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Office rent
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$25,700
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Office supplies
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5,970
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Utilities, office
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14,190
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Salary, office manager
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55,470
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Salary, receptionist
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35,280
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Depreciation-office equipment
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11,620
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Software licensing fees
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23,790
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Other miscellaneous expenses
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30,440
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Total overhead costs
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$202,460
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The company uses a predetermined overhead rate to apply overhead cost to each tax job. The rate for the year was $6 per tax-preparer hour. A total of 35,500 tax preparer hours was recorded for the year.
Compute the amount of under- or overapplied overhead cost for the year.