Morrison Corporation applies Manufacturing Overhead (MOH) on direct labor hours. They estimated total MOH to be $120,000 for the year and expected to work 10,000 direct labor hours during the year. At year end, actual MOH totaled $122,000 and the company had worked 11,500 direct labor hours. Answer each of the following questions and explain your answer. 1. Calculate the MOH applied. 2. Is MOH over or under applied and by how much? 3. If this (MOH over or under applied) balance is considered immaterial, what impact will it have on net income for the year? Assume that net income before adjustment is $60,000 what will be reported as net income