The Dexys Midnight Runners Company uses normal job-order costing with a predetermined overhead rate. The company had $11,000 in Materials Control at the beginning of 2018. The company includes BOTH direct and indirect materials in the Materials Control account. At the beginning of 2018, the company had two jobs in Work in Process. These were Job 222, which had $25,000 of product costs charged to the job during 2017, and Job 333, which had $35,000 of product cost charged to the job during 2017. The company also had one job in Finished Goods at the beginning of 2018. This was Job 111, which consisted of 80 units with a production cost of $500 for each unit. For 2018, the company will charge overhead to jobs using direct labor HOURS. The estimated direct labor hours for 2018 was 9,000, and the estimated overhead cost for 2018 was $144,000. The following information shows what happened to the only 4 jobs that the company worked on during 2018:

-------------------------Job 222--------Job 333 --------Job 444--------Job 555

Direct materials:----$43,000--------$51,000---------$17,000-------$19,000

Direct labor hours:---2,000 hours 4,000 hours 3,000 hours 1,000 hours

Units on completed job 200 units, 1,000 units, Unfinished job, 40 units

The actual cost of all direct labor was $15 per hour. The company purchased $166,000 of total materials during 2018. During 2018, the company finished Jobs 222, 333, and 555. Job 444 was NOT completed during 2018. The actual overhead incurred during 2018 was $175,000. Of the total overhead amount of $175,000, $17,000 was for indirect materials used. During 2018, the company sold 60 units from Job 111 for $800 each,150 units from Job 222 for $1,000 each, 525 units from Job 333 for $400 each, and 32 units from Job 555 for $1,500 each. The total period expenses for 2018 were $130,000.

1. Compute the underallocated or overallocated overhead for 2018, and tell whether it is underallocated or overallocated.