The predetermined overhead allocation rate for Constant, Inc., is based on estimated direct labor costs of $500,000 and estimated factory overhead of $550,000. Actual costs incurred were:

Direct Materials..................	$ 250,000
Direct Labor.......................	450,000
Indirect Materials...............	74,000
Indirect Labor.....................	118,000
Sales Commissions............	50,000
Factory Depreciation..........	180,000
Property Taxes, Factory.....	20,000
Factory Utilities..................	30,000
Advertising.........................	62,500
Factory Equipment Rental.....	99,000

1)Determine the amount of over- or underapplied overhead AND prepare the journal entry to eliminate the over- or under-applied overhead.