Boxcar, Inc., which uses a predetermined overhead rate based on direct labor hours. Use the information below to answer the following 3 questions:

	Total manufacturing overhead	Direct labor-hours
Estimated	$160,000	8,000 hours
Actual	$172,500	7,050 hours

a. Calculate Boxcars predetermined overhead rate.

b. Calculate Boxcar's applied overhead.

c. How much was Boxcar's over- or under-applied overhead?