The following information pertains to Trenton Glass Works for the year just ended.

Budgeted direct$-$labor cost: $70,000$ hours $($practical capacity$)$ at $$16$ per hour

Actual direct$-$labor cost: $80,000$ hours at $$17\mathrm{.}50$ per hour

Budgeted manufacturing overhead: $$997,500$

Actual selling and administrative expenses: $$439,000$

Actual manufacturing overhead:

Indirect material:

Beginning inventory, January $1$

Purchases during the year

$48,000$

Ending inventory, December $31$

$93,000$

$64,000$

$1.$ compute the firms predetermined overhead rate, which is based on direct$-$labor hours.

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