Question 2 (10 Marks) The following is selected information from the budget of the Core Company at the beginning of this year: Estimated factory overhead for the year $132,000 Estimated direct labour hours for the year 55,000 hours Estimated machine hours for the year 42,000 hours Estimated direct labour cost for the year $825,000 Actual factory overhead incurred during the year $144,000 Calculate the predetermined overhead application rate if the company uses the following as a basis: (you must show all your work and calculations) (a) Direct labour hours. (3 Marks) (b) Direct labour cost. (3 Marks) c) Machine hours. (3 Marks) (d) If method (a) was used and actual direct labour hours was 65,000 hours at the end of the year, was overhead over or under applied and by how much? (1 Mark)