TO Ltd, makes construction equipment. At the beginning of the year, overhead costs were estimated to be $720,000. However, actual overhead was $770,000. TCL uses direct labor hours as

the cost allocation base. At the beginning of the year, total direct labor hours were estimated at 18,000 hours, but actual direct labor hours for the year totaled 22,000 hours. Compute the

actual overhead rate and the estimated overhead rate.