This New Jersey Company uses job over costing applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the companys predetermined overhead rate of $14.00 per direct labor-hour was based on a cost formula that estimated $560,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours.

During the year the company incurred the following salaries and wages: direct labor, $510,000; indirect labor, $150,000; selling and administrative salaries, $257,000.

The company also incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities) of $410,000 and various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing) of $382,000.

Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.

1. How much manufacturing overhead was applied to production during the year?

2. 2. What was the total amount of actual manufacturing overhead cost incurred during the year?

3. 3. Is manufacturing overhead underapplied or overapplied for the year? By how much?