Boxcar, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $10,000,000 and total direct labor hours to be 250,000 hours.

In March, Boxcar incurred actual overhead costs of $830,000 and used 20,000 hours.

a. Calculate Boxcar's predetermined overhead rate.

b. Calculate Boxcar's applied overhead.

c. How much was Boxcar's over- or under-applied overhead for the month of March? MAKE SURE YOU INDICATE WHETHER IT WAS OVER or UNDER applied, as well as the amount.