Logan Products computes its predetermined overhead rate annually on the basis of direct labour hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $586,000 and the total of direct labour would be 40,000 hours. Its actual total manufacturing overhead for the year was $713,400 and its actual total direct labour was 41,000 hours.

* Compute the companys predetermined overhead rate for the year, calculate the total overhead applied, and determine the amount under- or over-applied overhead in the year.