Estimated cost and operating data for three companies for the upcoming year follow:

CompanyABCDirect labour-hours70,00035,00052,500Machine-hours35,00070,00017,500Direct materials cost$350,000$245,000$262,500Manufacturing overhead cost$420,000$343,000$1,207,500

Predetermined overhead rates are computed using the following bases in the three companies:

CompanyOverhead Rate Based onADirect labour-hoursBMachine-hoursCDirect materials cost

Required:

1.Compute the predetermined overhead rate to be used in each company during the upcoming year.(Round your answers to 2 decimal places.)

2-a.Assume that company A works on three jobs during the upcoming year. Direct labour-hours recorded by job are as follows: job 418, 21,000 hours; job 419, 35,000 hours; job 420, 10,500 hours. How much overhead cost will the company apply to work in process for the year?(Do not round intermediate calculations.)

2-b.If actual overhead costs total $450,000 for the year, will overhead be under- or overapplied? By how much?(Do not round intermediate calculations.)