Acme Corp uses job order costing to trace costs to it's bracelet products that are tailored to meet specific customer needs. The followign info is computer output from two least squares regression analyses that were run using past data from Acme.

	Direct Labor hours	Machine hours
Estimated fixed overhead	$50,000	$70,000
Estimated variable overhead per unit of production	$7 per Direct labor hour	$5 per Machine hour
R-squared form least square regression	.88	.57

For 2014, acme expected direct labor hours to equal 10,000 hours and expected machine hours to equal 20,000. Acme had actual direct labor hours for 2014 of 12,000 and actual machine hours fo 18,000. Actual manufacturing overhead costs for 2013 were $148,500.

1. Compute the predetermined overhead rate using Direct Labor hours as the activity base.

2. How much is the under applied or over applied manufacturing overhead before allocation to COGS using the answer from #1?

3. Compute the predetermined overhead rate using Machine hours as the activity base.

4. How much is the under applied or over applied manufacturing overhead before allocation to COGS using the answer from #3?