The Three B's Company (Brains, Bomb and Bow Tie) specializes in making customized educational teaching video tapes for faculty to use in their classes. The company is a budget rents out a small recording studio to prepare the tapes. The company also has a small administrative office right across the street from the studio. As the company's accountant you have been asked to assist Three B's in determining the manufacturing cost of a video. The Company applies manufactur- ing overhead on a direct labor hour basis. The company has provided you with the following selected estimates for the current year Estimates $ 6,000 OHS Depreciation on the recording studio Rent on the administrative office Office secretary's salary Telephone in the recording studio Wages of the technicians making the video tapes Advertising costs Lubricants for the machines used to make the tapes Insurance on the recording studio Direct labor hours ,000 3,000 3,000 $ 2,000 $ 1,000 $ 10,000 $ 1,500 $ 300 S700_ 500 Estimated Total OFH At the end of the current year the following selected actual information is available: Total Manufacturing overhead Direct Labor hours worked Wages of the technicians Actual Data $9,400 $10,000 600 Required: 1. Compute Three B's predetermined overhead rate for the current year. Show all work clearly!!! (Hint: Treat the studio as the factory). Overhead Rate - 2. Compute the amount of over or under applied overhead for the current year. Show all work clearly! Overhead 40