Calgary Injection Moulding operates a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. In computing an overhead rate for the year, the companys estimates were as follows: manufacturing overhead cost, $248,000, and machine-hours, 40,000. The company has provided the data in the following table:

	Beginning			Ending
Raw Materials	$	21,000		$	16,000
Work in Process	$	44,000		$	40,000
Finished Goods	$	68,000		$	60,000

The following actual costs were incurred during the year:

Purchase of raw materials (all direct)	$	133,000
Direct labour	$	80,000
Machine-hours		42,000
Manufacturing overhead costs:	$	264,000

Required:

1-a. Compute the predetermined overhead rate for the year. (Round your answer to 2 decimal places.)

1-b(i) Compute the amount of underapplied or overapplied overhead for the year.