Applying Overhead with Various Cost Drivers P2-B Estimated cost and operating data for three companies for the coming year are given below: Company A B Direct labor hours 60,000 30,000 40,000 Machine hours 25,000 90,000 18,000 Raw materials cost $ 300,000 $ 160,000 $ 240,000 Manufacturing overhead cost 432,000 270,000 384,000 Predetermined overhead rates are computed using the following cost drivers in the three companies: Company A B Overhead Rate Based on - Direct labor hours Machine hours Raw materials cost Required: 1) Compute each company's predetermined overhead rate. 2) Assume that Company A works a total of 60,000 labor hours year. How much will their overhead applied amount to? If actual costs are $430,000, for the year, will overhead be over or under applied? By how much