Logan Products computes its predetermined overhead rate annually on the basis of direct labour-hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $633,250 and the total direct labour would be 42,500 hours. Its actual total manufacturing overhead for the year was $761,650 and its actual total direct labour was 43,500 hours.

Question 1 :Compute the company's predetermined overhead rate for the year, calculate the total overhead applied, and determine the amount of under- or overapplied overhead in the year.