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

	Solomon Company	Stuart Company
Actual direct labor cost	$ 146,000	$ 171,000
Estimated direct labor cost	151,000	107,000
Actual manufacturing overhead cost	55,100	91,600
Estimated manufacturing overhead cost	67,950	95,230

Required

Compute the predetermined overhead rate for each company.

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

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