Prepare the December 31 adjusting journal entries for Evanoff Company. Data are as follows:

(a) Factory overhead is applied at a rate of 60% of direct labor costs. At the end of the year, the direct labor costs associated with the jobs still in process totaled $8,000.

(b) A physical count of factory supplies at the end of the year shows that $5,100 of factory supplies were used during the year.

(c) A review of the insurance policy files shows that $6,500 of insurance on the factory building and equipment has expired.

(d) Depreciation expense for the year on the factory building was $9,000 and on factory equipment was $13,500, a total of $22,500.

(e) The factory overhead account has a debit balance of $187,600 and a credit balance of $189,500 [after recording adjustments (a) through (d)]. Use Cost of Goods Sold for this adjustment.

Was factory overhead under- or overapplied for the year?