The cost accountant of a newly formed company was asked to establish a predetermined rate for applying overheads to the jobs moving through a single manufacturing shop and to check results periodically. After consulting various officials of the company, he came up with the following estimated data for the year 2012 $ Estimated Actuals Factory supervision Indirect labour Inspection Maintenance Indirect material Heat, light and power Depreciation Misc. factory overheads Direct labour hours 55,000 1,10,000 70,000 35,000 25,000 20,000 35,000 10,000 1,44,000 51,000 99,000 73,000 39,000 20,000 18,000 35,000 3,000 1,21,500 At the end of 2012, the first year of operations, the actual results were recorded against each item above. You are required to: (a) Compute the predetermined overhead rate, based on direct labour hours; also compute the incurred overhead rate; (b) Determine the under or over-applied overheads for the year