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Leigh M, is working with her production supervisor to compute a predetermined fixed overhead rate for the coming year. Leigh and her production supervisor have put together a budget of 1,600 direct labor hours for the coming year. During the same period, they plan to use 2,000 machine hours. Leigh has assembled the following information for the upcoming year: If Leigh decides to use a predetermined fixed overhead rate based on direct labor hours, what would be the predetermined overhead rate? $120 per direct labor hour $80 per direct labor hour $65 per direct labor hour $150 per direct labor hour Keystone Company applies overhead on the basis of machine hours, and reported the following data. Compute the amount of overhead under-applied or over-applied for the period. $22,500 under-applied $15,000 over-applied $22,500 over-applied $15,000 under-applied