Privack Corporation has a standard costing system in which it applies overhead to products on the basis of the standard direct labour-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

Variable overhead cost per DLH.................................................................$2.50
Total fixed overhead cost per year.......................................................$350,000
Budgeted standard DLHs (denominator level of activity)......................40,000
Actual DLHs.................................................................................................41,000
Standard DLHs allowed for the actual output.........................................42,000

Required:

1. Compute the predetermined overhead rate for the year.

2. Determine the amount of overhead that would be applied to the output of the period.