II. We have the following estimated and actual data for the year 2020. Estimated Factory supervision $ 50,000 Indirect labor 115,000 Inspection 70,000 Maintenance 35,000 Indirect material 25,000 Heat, Light, power 20,000 Depreciation 35,000 Miscellaneous factory overhead 10,000 Total Factory Overhead 360.000 TL Total Direct Labor Hours 144,000 Dis Required: 1.Compute factory overhead application rate 2.Determine the over- or underapplied overhead for the year 3.Why do we need to use factory overhead application rate ? Explain. Actual (Occured) $ 51,000 99,000 73,000 39,000 20,000 18,000 35,000 3,000 $ 338,000 121,500dis