The following data is provided for the ABC company: Budgeted overhead for the yr. is $200,000 Projected direct labor cost for the yr. -$100,000 Estimated machine hours for the year- 20,000 Estimated direct labor hrs for the yr.-20,000 Overhead is applied to product based on machine hours. During the month of June the company incurred 3000 labor hours, used 2500 machine hours and incurred $30,000 of labor costs and $50,000 of overhead costs.

Calculate a) The overhead rate b) The amount of overhead applied in june c) The over or underapplied overhead for june and explain what it means.