Ziggy Corp. is a job lot manufacturer. The budget for the month of June calls for 8,000 direct labor hours to be worked. Budgeted overhead is $80,000 with a predetermined rate of $10 per hour. Overhead is applied based on actual direct hours worked. Actual direct hours were 8,200 and actual overhead spending was $90,000. What was the under applied or over applied overhead for the month of June? Over applied is shown as a negative number.
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