Applying Overhead Brown School teaches private accounting courses. It applies overhead based on instructor hours. The following information was forecasted for 2012: Direct Labor..........................................................................$280,000 Property tax on equipment................................................$2,500 Supplies................................................................................$10,000 Rent.......................................................................................$19,000 Support staff salaries..........................................................$130,000 Instructor hours...................................................................$15,000 1. Calculate the predetermined overhead rate for 2012. (Note: Rather than including supplies as part of the overhead charge, Brown School charges supplies to each course.) 2. If Brown School actually had 18,000 instructor hours and spent $160,000 on overhead, will overhead be under - or overapplied for 2012? By how much