Question - Ranger Co uses direct labor cost as a basis for allocating overhead. Predicted for the following year are: overhead $2,000,000; machine hours 100,000; direct labor hours 50,000 and direct labor cost $500,000. What is the predetermined overhead rate? How much overhead would be applied if the actual direct labor cost is $480,000? What is the entry when overhead is applied? Say actual overhead costs were $2,010,000. What is the entry to record actual overhead? Is overhead over or under applied in this case?