Script Company uses a job costing accounting system for its production costs. A predetermined overhead rate based on direct labor-hours is used to apply overhead to individual jobs. An estimate of overhead costs at different volumes was prepared for the current year as follows.

Direct labor-hours		31,600			41,300			50,600
Variable overhead costs	$	347,600		$	454,300		$	556,600
Fixed overhead costs		500,000			500,000			500,000
Total overhead	$	847,600		$	954,300		$	1,056,600

The expected volume is 41,300 direct labor-hours for the entire year. The following information is for October, when jobs 1011 and 1015 were completed.

Inventories, October 1
Raw materials and supplies	$	42,600
Work in process (Job 1011)		93,200
Finished goods		229,600
Purchases of raw materials and supplies
Raw materials		630,400
Supplies		80,700
Materials and supplies requisitioned for production
Job 1011		280,700
Job 1015		234,500
Job 1017		45,800
Supplies		74,800
	$	635,800
Machine-hours (MH)
Job 1011		6,204 MH
Job 1015		6,104 MH
Job 1017		3,712 MH
Direct labor-hours (DLH)
Job 1011		14,060 DLH
Job 1015		6,180 DLH
Job 1017		3,780 DLH
Labor costs
Direct labor wages (all hours @ $12)	$	288,240
Indirect labor wages (12,300 hours)		64,575
Supervisory salaries		126,900
Building occupancy costs (heat, light, depreciation, etc.)
Factory facilities	$	36,700
Sales and administrative offices		14,150
Factory equipment costs
Power	$	21,780
Repairs and maintenance		8,170
Other		9,750
	$	39,700

Required:

e. Compute actual factory overhead incurred during October.

f. At the end of the year, Script Company had the following account balances:

		Balance
Underapplied overhead	$	4,800,000
Cost of goods sold		67,900,000
Work-in-process inventory		9,700,000
Finished goods inventory		19,400,000

Show the Underapplied Overhead effect on the account balances in the following table.