The following information applies to the questions displayed below.] The following information pertains to Paramus Metal Works for the year just ended. Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour Actual direct-labor cost: 80,000 hours at $17.50 per hour Budgeted manufacturing overhead: $997,500 Budgeted selling and administrative expenses: $438,000 Actual manufacturing overhead: Depreciation $ 231,000 Property taxes 23,000 Indirect labor 82,000 Supervisory salaries 200,000 Utilities 59,000 Insurance 32,000 Rental of space 301,000 Indirect material (see data below) 79,000 Indirect material: Beginning inventory, January 1 47,000 Purchases during the year 94,000 Ending inventory, December 31 62,000

Required:

1.

Compute the firms predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.)

2.	Calculate the overapplied or underapplied overhead for the year.