Primary Co. allocates factory overhead to jobs based on actual machine hours used. Total overhead for all jobs in May was $1,000,000 and total estimated machine hours for the same period were 12,500.

A. Calculate the POHR for May's factory overhead.

B. Assume Job 898 used 500 machine hours in May. How much overhead should be allocated to this job?

C. Actual overhead costs for Job 898 in May were $38,000. Based on your answer to part B, was overhead overapplied or underapplied? By how much?