Mark Corporation estimates its manufacturing overhead to be $90,000 and its direct labor costs to be $200,000 for year

1. The actual direct labor costs were $50,000 for Job 301, $75,000 for Job 302, and $100,000 for Job 303 during year 1; the actual manufacturing overhead was $97,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows:

Work-in-process inventory $ 10,125
Finished goods inventory 30,375
Cost of goods sold 60,750

Required:

Prepare an entry to allocate the under- or overapplied overhead.