Aqua Engineering Co. uses a predetermined overhead rate to apply manufacturing overhead to jobs. This year, the company worked 9,000 actual direct labor hours and used 10,000 machine hours. The total overhead cost incurred was $60,000 The company had estimated that it would work 7,000 direct labor hours, and use 8,000 machine hours, during the year. the allocation rate based on direct labour hours is $8 per direct labour hour and the allocation rate based on machine hours is $7 per machine hour 13. How much overhead is over or under applied using machine hours as a cost drive??14. how much overhead was estimated? $7 x 8,000 machine hours or $8 x 7,000 direct labour hours = $56,000