Cat Strings, Inc. uses machine hours as a basis for allocating overhead. Next year's estimated total overhead is $150,000. The direct labor hours are predicted to be 20,000 hours and the machine hours are predicted to be 15,000. The average labor cost is $50 per hour. A) What is the predetermined overhead rate? B) They expect to run the machines for 800 hours in January. They actually ran them 850 hours. How much overhead would be applied in the month of January?