Overhead Analysis. Lakeviews Company uses predetermined departmental overhead rates. The rate for the Fabricating Department is $4 per direct labor hour. Direct labor employees are paid $10.50 per hour. A total of 15,000 direct labor hours were worked in the department during the year. Total overhead charged to the department for supervisors’ salaries, indirect labor, labor fringe benefit costs, indirect materials, and service department costs was $65,000.
Required:
(1) Determine the over- or underapplied factory overhead.
(2) Determine the effect on the amount of over- or underapplied factory overhead in each of the fol¬ lowing situations. Discuss each item separately, dis¬ regarding the other items.

(a) Direct laborers worked 100 overtime hours for which time and a half was paid. Overtime pre¬ mium, the amount in excess of the regular rate, is charged as overhead to the department in which the overtime is worked.

(b) A 35-cents-per-hour wage increase wras granted November 1. Direct labor hours worked in November and December totaled 2,500.

(c) The company cafeteria incurred a $1,500 loss, which was distributed to producing departments on the basis of number of employees. Nine of the 120 employees work in the Fabricating Department. No loss was anticipated when pre¬ determined overhead rates were computed.