Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $337,770 for the year, and machine usage is estimated at 125,100 hours. For the year, $357,866 of overhead costs are incurred and 130,900 hours are used.

Compute the manufacturing overhead rate for the year. (Round answers to 2 decimal places, e.g. 1.25.)

Manufacturing overhead rate: $2.70 per machine hour

What is the amount of under- or overapplied overhead at December 31?

A) Manufacturing Overhead: $ ______