Response to the following problem:
Tom's Tool & Die uses a predetermined factory overhead rate based on machine-hours. For August, Tom's budgeted overhead was $247,500 based on a budgeted volume of 45,000 machine-hours. Actual overhead amounted to $225,000 with actual machine-hours totaling 41,500.
Required:
What was over- or underapplied manufacturing overhead in August? (Do not round intermediate calculations.)