Manufacturing company (overheads)

| January 28, 2015

Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $328,380 for the year, and machine usage is estimated at 126,300 hours.

For the year, $342,963 of overhead costs are incurred and 130,200 hours are used.

 

What is the amount of under- or overapplied overhead at December 31?

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