Saracusa Inc., an accounting firm, applies overhead to jobs…

Sаrаcusа Inc., an accоunting firm, applies оverhead tо jobs based on direct labor hours using a normal costing system.  Overhead was estimated to be $180,000, direct labor hours were estimated to be 12,000, and direct labor cost was estimated to be $225,000.  During the year, Saracusa incurred actual overhead costs of $185,000, actual direct labor hours of 13,000, and actual direct labor costs of $222,000.  By year-end, the firm’s overhead account balance before adjustment for under-applied or over-applied overhead was: