Ravsten Company uses a job-order costing system. The company applies overhead cost to jobs on the...

Ravsten Company uses a job-order costing system. The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,000 machine-hours and incur $159,100 in manufacturing overhead cost. The following transactions occurred during the year: a. Raw materials requisitioned for use in production, $191,000 (75% direct and 25% indirect). b. The following costs were incurred for employee services: Direct labor $ 161,000 Indirect labor $ 19,000 Sales commissions $ 11,000 Administrative salaries $ 26,000 c. Heat, power, and water costs incurred in the factory, $35,000. d. Insurance costs, $11,000 (85% relates to factory operations, and 15% relates to selling and administrative activities). e. Advertising costs incurred, $51,000. f. Depreciation recorded for the year, $61,000 (80% relates to factory operations, and 20% relates to selling and administrative activities). g. The company used 41,000 machine-hours during the year. h. Goods that cost $481,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. i. Sales for the year totaled $702,000. The total cost to manufacture these goods according to their job cost sheets was $476,000. Required: 1. Determine the underapplied or overapplied overhead for the year. (Round predetermined overhead rate to 2 decimal places.).

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