Problem - The following calendar year information about the Tahoma Corporation is available on December 31:
Advertiing Expense $28,800
Depreciation of factory equipment 42,320
Depreciation of office equipment 10,800
Direct Labor 142,600
Factory utilities 36,650
Interest expense 6,650
Inventories January 1:
Raw materials 3,450
Goods in Process 17,250
Finished goods 35,650
Inventories December 31:
Raw materials 2,300
Goods in process 20,700
Finished goods 31,050
Raw materials purchased 132,450
Rent on factory building 41,400
Indirect labor 51,750
Sales commisisons 16,500
The company applies overhead on the basis of 125% of direct labor costs. Calculate the amount of over- or underapplied overhead?