Response to the following problem:
Bubba's Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $ 1,150,000 and direct labor hours are budgeted at 162,000 hours. Actual overhead was $ 1,100,000 and actual overhead hours worked were 150,000.
a) Calculate the predetermined overhead rate
b) Calculate the overhead applied
c) Determine the amount of overhead that is over/underapplied.