Applying Overhead Brown School teaches private accounting courses. It applies overhead based on instructor hours. The following information was forecasted for 2009:

1. Calculate the predetermined overhead rate for 2009.
2. If Brown School actually had 18,000 instructor hours and spent $160,000 on overhead, will overhead be under- or overapplied for 2009? By how much?

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Direct labor $280,000 Property tax on equipment $2,500 Supplies Rent $10,000 $19,000 Support staff salaries Instructor hours $130,000 15,000