Krepes Manufacturing has two departments that produce small appliances. The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for April are shown below:

	Drilling Dept.	Cutting Dept.
Estimated annual manufacturing overhead costs	$150,000	$300,000
Estimated annual direct labor cost	$60,000	$600,000
Estimated annual machine hours	40,000	10,000
Actual manufacturing overhead costs for April	$10,000	$14,000
Actual direct labor cost for April	$4,200	$34,000
Actual machine hours for April	2,500	1,000

Determine the predetermined manufacturing overhead rate for the Drilling Department.

Determine the predetermined manufacturing overhead rate for the Cutting Department.

Determine the balances of the manufacturing overhead accounts for each department as of April 30. Indicate whether the amounts represent overallocated or underallocated manufacturing overhead.