Isabelle, Inc., uses a budgeted factory overhead rate to apply overhead to production. The following data are available for the year ended December 31, 20X5. Budgeted Actual Factory overhead $675,000 $716,000 Direct labor costs $450,000 $432,000 Direct labor-hours 12,500 dlh 13,325 dlh Required: a. Determine the budgeted factory overhead rate based on direct labor-hours. b. What is the applied overhead based on direct labor-hours? c. Is overhead overapplied or underapplied? Explain