Reference no: EM13116592

Question. The following calendar year information about the Tahoma Corporation is available on December 31:

Advertising expense.................28,800

depreciation of factory equipment...42,320

depreciation of office equipment....10,800

direct labor........................142,600

factory utiXXties...................35,650

interest expense....................6,650

inventories Jan. 1

Raw materials....................3,450

Goods in process.................17,250

finished goods...................35,650

inventories Dec. 31

Raw materials....................2,300

Goods in process.................20,700

Finsished goods..................31,050

Raw materials purchases.............132,450

Rent on factory building............41,400

Indirect labor......................51,750

Sales commissions...................16,500

The company applies overhead on the basis of 125% of direct labor costs. Calculate the amount of over- or underapplied overhead.