Lemon Schools teaches private drivers' education courses. It applies overhead based on instructor hours, i.e., direct labor hours. The following information was forecasted for 2000 :

\begin{tabular}{lr}

Direct labor & $\$ 360,000$ \\

Property tax on cars & $\$ 3,600$ \\

Supplies & $\$ 12,000$ \\

Rent & $\$ 24,000$ \\

\hline Support staff salaries & $\$ 160,000$ \\

Instructor hours & 24,000 \\

\hline

\end{tabular}

1. Calculate the predetermined overhead rate for 2000.

2. If Lemon actually had 23,000 instructor hours and spent $\$ 170,000$ on overhead, will overhead be under- or overapplied for 2000 ? By how much?