Somerset Products uses a job costing system with two direct cost categories and one manufacturing overhead cost pool. Somerset allocates manufacturing overhead costs using direct manufacturing labor costs.

The following information pertains to the year 2018:

	Budget	Actual
Direct material costs	$2,150,000	$2,075,000
Direct manufacturing labor costs	$1,750,000	$1,690,000
Manufacturing overhead costs	$3,062,500	$3,211,000

The following information pertains to Job GWH undertaken in May 2018:

	Budget	Actual
Direct materials used	$35,000	$35,000
Direct manufacturing labor costs	$25,000	$30,000

1. Compute the cost of Job GWH using normal costing.

b. For the year 2018, compute the under- or overallocated manufacturing overhead under normal costing. (indicate the amount and if it is under- or overallocated)