PLEASE CORRECT RED!

The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: 17,000 Indirect materials Indirect labor 150,000 Property taxes, factory 10,000 90,000 Utilities, factory 147,000 Depreciation, factory 12,000 Insurance, factory 426,000 Total actual manufacturing overhead costs incurred Other costs incurred: 420,000 Purchases of raw materials (both direct and indirect) 80,000 Direct labor cost Inventories: Raw materials, beginning 22,000 32,000 Raw materials, ending 42,000 Work in process, beginning 72,000 Work in process, ending The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $20 per machine-hour. A total of 21,700 machine-hours was recorded for the year. Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year. Answer is complete and correct 8,000 V Overapplied overhead cost