The Wilson Company uses direct labor hours in the determination of its predetermined overhead rate. Below is information for the current year:

Estimated manufacturing overhead.............................................$525,000 Estimated direct labor hours................................................15,000 hours Actual manufacturing overhead.................................................$495,000Actual direct labor hours....................................................13,500 hours

1. The predetermined overhead rate for the year is :
2. At the end of the year, the company's overhead is (indicate whether the overhead isoverapplied or underapplied and the amount):