Logan Products computes its predetermined overhead rate annually on the basis of machine-hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $363,500 and machines would be run a total of 27,500 hours. Its actual total manufacturing overhead for the year was $351,400 and its actual total machine-hours was 27,000 hours.

Required:

Compute the companys predetermined overhead rate for the year, calculate the total overhead applied, and determine the amount of under- or overapplied overhead in the year. (Round your predetermined overhead rate to 2 decimal places.)