1.calculate the predermined overhead rate using direct labor as the basis

2. calculate amount if applied overhead

3. calculate the difference in applied and actual overhead

4. over or under applied

GHI Company estimated this year's overhead using $60,000 and direct labor at $20,000. Actual direct material cost was $40,000, actual direct labor cost was $52,500 and actual overhead for the year was $158,000. Determine the amount of over or under-applied overhead by (show and label all calculations below for full credit): 1. Calculating the Predetermined Overhead Rate (POHR) using direct labor as the basis. 2. Calculating the amount of applied overhead. 3. Calculating the difference in applied and actual overhead. 4. Is this OVER or UNDER applied