2 (b) The following information has been made available to you. Assume that overhead is applied on the basis of direct labor hours (10 points).

Estimated overhead $1,638,000

Estimated direct labor hours 390,000

Actual direct labor hours 442,000

Actual overhead $1,862,000

a. Compute the predetermined overhead rate.

b. Compute the amount of applied overhead for the year.

c. Compute the amount of underapplied or overapplied overhead.