Pharoah Company estimates that annual manufacturing overhead costs will be $$672,000.$ Estimated annual operating activity bases are: direct labor cost $$515,200,$ direct labor hours $40,000$ and machine hours $80,000.$ The actual manufacturing overhead cost for the year was $$673,120$ and the actual direct labor cost for the year was $$510,720.$ Actual direct labor hours totaled $39,800$ and machine hours totaled $79,000.$ Pharoah applies overhead based on direct labor hours.

Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over$-$or underapplied and the amount. $($Round predetermined overhead rate to $2$ decimal places, eg$.15\mathrm{.}25$ and all other answers to $0$ decimal places, eg$.1,525.)$

Predetermined overhead rate

$ $$ per direct labor hour

Manufacturing overhead applied $ $$

$$ $ $$