Munoz Company and Perez Company assign manufacturing overhead to Work in Process Inventory using direct labor cost. The following information is available for the companies for the year:

	Munoz Company				Perez Company
Actual direct labor cost	$	148,000			$	173,000
Estimated direct labor cost		153,000				105,000
Actual manufacturing overhead cost		54,400				90,800
Estimated manufacturing overhead cost		76,500				88,200

Required

1. Compute the predetermined overhead rate for each company.

2. Determine the amount of overhead cost that would be applied to Work in Process Inventory for each company.

3. Compute the amount of overapplied or underapplied manufacturing overhead cost for each company.