1. Hill Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows:

   Actual manufacturing overhead cost $500,000

   Estimated manufacturing overhead cost $550,700

   Estimated direct labor cost $175,300

   Estimated direct labor hours 50,700

   Actual direct labor hours 60,100

   Estimated machine hours 40,500

   Actual machine hours 35,900

   By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent.)

   		$62,460 underallocated
   		$62,460 overallocated
   		$11,760 underallocated
   		$11,760 overallocated