Fielding Inc. estimates their manufacturing overhead as a percent of direct materials used. In the current year, the predetermined overhead rate is 140% of direct material costs. The month end journal entry to record the production activity included the following:
|Work in Process||\$55,000|
Budgeted overhead was \$72,000 and actual overhead was \$77,500. What is the over-applied or under-applied overhead for the month?