Adams Company and Baird Company assign manufacturing overhead to Work in Process Inventory using direct labor cost. The following information is available for the companies for the year:

	Adams Company				Baird Company
Actual direct labor cost	$	149,000			$	174,000
Estimated direct labor cost		154,000				105,000
Actual manufacturing overhead cost		54,700				90,500
Estimated manufacturing overhead cost		75,460				92,400

Required

1. Compute the predetermined overhead rate for each company.

2. Determine the amount of overhead cost that would be applied to Work in Process Inventory for each company.

3. Compute the amount of overapplied or underapplied manufacturing overhead cost for each company.