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The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs...

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Accounting

The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $120,400 of manufacturing overhead for an estimated allocation base of $86,000 direct labor dollars. The company has provided the following data: Beginning Ending Raw Materials $ 20,000 $ 11,000 Work in Process $ 49,000 $ 36,000 Finished Goods $ 72,000 $ 56,000 The following actual costs were incurred during the year: Purchase of raw materials (all direct) $ 137,000 Direct labor cost $ 82,000 Manufacturing overhead costs: Insurance, factory $ 9,200 Depreciation of equipment $ 19,000 Indirect labor $ 35,800 Property taxes $ 9,000 Maintenance $ 12,000 Rent, building $ 33,000 1-b. Compute the amount of under-applied or over-applied overhead for the year. (Input the amount as a positive value. Omit the "$" sign in your response.) overhead $

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