XYZ Company had the following information:

Budgeted overhead $75,000

Actual overhead $80,000

Budgeted Direct-labor hours 20,000

Ending balances in the following accounts:

	Ending Balance	Actual DLH in Ending Balance
Raw Materials Inventory	$ 40,000	0
Work In Process Inventory	$ 30,000	2,100
Finished Goods Inventory	$ 60,000	8,400
Cost of Goods Sold	$210,000	10,500

• If 21,000 direct labor hours are used, calculate the amount of allocated manufacturing overhead.
• By how much is XYZs manufacturing overhead under or over applied? Be sure to specify over versus under-applied.