Ivanhoe Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $225,750 for the year, and machine usage is estimated at 107,500 hours. For the year, $276,920 of overhead costs are incurred, and 111,800 hours are used.

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

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