The following data is provided for the XYZ Company:

Budgeted overhead for the year is $200,000

direct labor cost for the year - $100,000

Estimated machine hours for the year -20,000

Estimated direct labor hours for the year - 10,000

Overhead is applied to product based on direct labor hours

During the month of June, the company incurred 4000 labor hours, used 3,000 machine hours and incurred $40,000 of labor costs and $110,000 of overhead costs.

A)3%-Calculate the overhead rate used to apply costs

B)3%- Calculate the over or under applied overhead amount for the month of June