Teddy Inc. uses a job costing system. During the month of May, Teddy spent most of its time on job A50, which was started late in April. Following is cost information for job A50, other May costs, and relevant annual estimates. Direct Material Costs for job A50 for May $ 4,800 Direct Labor Costs for Job A50 (300 DLH @ $20 per DLH) for May $ 6,000 Actual Annual Overhead $ 20,500 Actual Annual DLH 2,850 Estimated Annual Overhead $ 22,500 Estimated Annual DLH 2,500 Required: (1) What is the predetermined overhead rate under normal costing? (2) What is the cost for May for job A50 assuming a normal costing system? (3) Calculate the under- or over-applied overhead for the year.