3. Compute the overapplied or underapplied overhead if the company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. For the month of March, the companys estimated manufacturing overhead cost was $300,000 based on an estimated activity level of 100,000 direct labor-hours. Actual overhead amounted to $325,000 with actual direct labor-hours totaling 110,000 for the month.