Answer:
$275,700 underapplied
Explanation:
The computation of the overhead is shown below:
But before that following calculation need to be done
Applied overhead is
= Actual machine hours × predetermined overhead rate
= 91,900 hours × ($13,502,000 ÷ 157,000)
= $7,903,400
And, the actual overhead is $8,179,100
So, the under applied overhead is
= $8,179,100 - $7,903,400
= $275,700