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West North Company had estimated $900,000 of manufacturing overhead​ (MOH) for the year and 60,000 direct labor​ (DL) hours, resulting in a predetermined MOH rate of $15 per DL hour. By the end of that​ year, the company had actually incurred $848,250 of MOH costs and had used a total of 58,500 DL hours on various jobs.
1. By how much did the company overallocate or underallocate MOH for the​ year?
2. Was MOH overallocated or underallocated for the​ year? How do you​ know?

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