Baxter Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year 2021 follows: Actual manufacturing overhead $342,000 Budgeted manufacturing overhead $339,450 Actual Direct labor hours incurred 9,450 Budgeted Direct labor hours 9,300

a. Compute the predetermined overhead rate. b. What amount of overhead was applied for the year? c. Was there a favorable or unfavorable variance?