Finney & Associates Is an Interior Decorating Firm in Tucson $\begin{array}{lr}\text { Direct material } & \$ 29,000 \\\text { Direct professional labor } & 42,000\end{array}$

Finney & Associates is an interior decorating firm in Tucson. The following costs were incurred in a project to redecorate the mayor's offices: $\begin{array}{lr}\text { Direct material } & \$ 29,000 \\\text { Direct professional labor } & 42,000\end{array}$
The firm's budget for the year included the following estimates: $\begin{array}{lr}\text { Budgeted overhead } & \$ 800,000 \\\text { Budgeted direet professional labor } & 640,000\end{array}$
Overhead is applied to contracts by using a predetermined overhead rate that is based on direct professional labor cost. Actual professional labor during the year was $655,000 and actual overhead was $793,000.
Required:
A. Determine the total cost to redecorate the mayor's offices.
B. Calculate the under- or overapplied overhead for the year. Be sure to label your answer.