Ayayai leases access to high$-$speed computers to small businesses. It provides the following information for the year:

Budgeted Actual

Overhead cost $$2,232,000$ $$2,132,000$

Computer hours $100,00090,000$

Direct labor hours $223,000203,000$

Overhead is applied on the basis of computer hours.

Instructions

a$.$ Compute the predetermined overhead rate.

b$.$ Determine the amount of overhead applied for the year.