Hogle Corporation uses job-order costing and applies overhead cost to jobs on the basis of machine-hours worked. For the just completed year, the company estimated that it would work 75,000 machine-hours and incur $450,000 in manufacturing overhead cost. The company actually worked 80,000 machine-hours. The company has provided the following financial data concerning its actual operations for the year:

Direct materials ............................................................ $360,000 Indirect materials ......................................................... $20,000 Direct labor .................................................................. $75,000 Indirect labor ................................................................ $110,000 Sales commissions ...................................................... $90,000 Administrative salaries ................................................. $200,000 General selling expenses ............................................ $17,000 Factory utility costs ...................................................... $43,000 Advertising costs ......................................................... $180,000 Factory depreciation .................................................... $280,000 Selling and administrative depreciation ....................... $70,000 Factory insurance ........................................................ $7,000 Selling and administrative insurance ........................... $3,000 Cost of goods sold (not adjusted for underapplied or overapplied overhead) .................... $870,000 Sales ............................................................................ $1,500,000

1. How much is the predetermined Overhead Rate?

2. How much is the overhead underapplied or overapplied for the year?