James Bond, Inc., has a job-order costing system. The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department A is based on machine hours, and the rate in Department B is based on direct materials cost. At the beginning of the most recent year, the company's management made the following estimates for the year:

	Department
	A	B
Machine-hours	80,000	20,000
Direct labour-hours	30,000	60,000
Direct materials cost	$240,250	$300,000
Direct labour cost	$270,000	$570,000
Manufacturing overhead cost	$420,000	$705,000

Job 007 entered into production on June 1^stand was completed on July 12th. The company's cost records show the following information about the job:

	Department
	A	B
Machine-hours	450	75
Direct labour-hours	70	140
Direct materials cost	$1,000	$1,100
Direct labour cost	$700	$900

At the end of the year, the records of James Bond, Inc. showed the following actual cost and operating data for all jobs worked on during the year:

	Department
	A	B
Machine-hours	75,000	35,000
Direct labour-hours	30,000	70,000
Direct materials cost	$160,000	$290,000
Manufacturing overhead cost	$390,000	$705,000

Required:

1. Compute the predetermined overhead rates for Department A and Department B
2. Compute the total overhead cost applied to Job 007.
3. Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.