Checker Inc. produces automobile bumpers. Overhead is applied on the basis of machine hours required for cutting and fabricating. A predetermined overhead application rate of $9.40 per machine hour was established for 2019.

Required:

1. If 9,300 machine hours were expected to be used during 2019, how much overhead was expected to be incurred?
2. Actual overhead incurred during 2019 totaled $122,250, and 9,800 machine hours were used during 2019. Calculate the amount of over- or underapplied overhead for 2019. (Input the amount as positive value.)
3. Whether the overapplied or underapplied overhead for the year is normally transferred to cost of goods sold in the income statement?