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Kirkaid Company recorded the following transactions for the just completed month:
a. $ 84,000 in raw materials were requisitioned for used in production. Of this amount, $72,000 was for director materials and the remainder was for indirect cost.
b. Total labor wages of $ 108,000 were incurred. Of this amount, $105,000 was for direct labor and the remainder was for indirect labor.
c. Additional actual manufacturing overhead was applied to jobs.
Required:
Determine the underapplied or overapplied overhead for the month.
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