For Neeraj Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Neeraj incurred $1,000,000 of factory labor costs, of which $850,000 is direct labor and $150,000 is indirect labor. Actual overhead incurred was $1,150,000.

Required:

1. Compute the amount of manufacturing overhead applied during the month.
2. Determine the amount of under/over applied manufacturing overhead.
3. Pass the journal entry to record the under/over applied overheads.