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

	Company
	X	Y	Z
Direct labour-hours	80,000	45,000	60,000
Machine-hours	30,000	125,000	21,000
Direct materials cost	$400,000	$290,000	$300,000
Manufacturing overhead cost	$536,000	$520,000	$480,000

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

Company	Overhead Rate Based On
X	Direct labour-hours
Y	Machine-hours
Z	Direct materials cost

Required:

1. Compute the predetermined overhead rate to be used in each company during the upcoming year.
2. Assume that Company X works on three jobs during the upcoming year. Direct labour-hours recorded by job are as follows: job 418, 18,000 hours; job 419, 26,000 hours; job 420, 38,000 hours. How much overhead cost will the company apply to work in process for the year? If actual overhead costs total $530,000 for the year, will overhead be under- or overapplied? By how much?