OMG Inc used a job-order costing system with a plant-wide overhead rate based on labor hours. At the beginning of the year, the company made the following estimates. Labor-hours required to support estimated production 120,000 Fixed manufacturing overhead cost $600,000 Variable manufacturing cost per machine hour $3.00 OMG in completed 8 jobs over the year using a total of 120.600 machine hours. The actual amount of MOH incurred for the year was $985,000. Before making the adjustment to COGS for any overapplied or underapplied MOH, which of the following is true