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

	Rundle Company				Rooney Company
Actual direct labor cost	$	147,000			$	172,000
Estimated direct labor cost		152,000				109,000
Actual manufacturing overhead cost		54,300				91,000
Estimated manufacturing overhead cost		65,360				93,740

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.