Before the year began, a company that applies manufacturing overhead cost to products based on machine-hours estimated t

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Before the year began, a company that applies manufacturingoverhead cost to products based on machine-hours estimatedthey would incur a total of $980,000 of total manufacturingoverhead costs and that 98,000 machine-hours would be used. Those estimates were used to compute the predeterminedoverhead rate.
Actual hours and costs for the year were:
Machine-hours
78,000
Manufacturing overhead cost
$
941,000
Required:
1. Determine the underapplied or overapplied overhead for theyear.