Malcolm Company uses a predetermined overhead tate based on direct labor-hours to apply manufacturing overhear to jobs.

On September 1, the estimates for the month were:

Manufacting overhead $17,000

Direct labor-hours $13,600

During September, the actual results were:

Manufacturing overhead $18,500

Direct labor-hours $12,000

Based on the above information was the overhead rate over applied or under applied and by what amount for the month of September?