Estimated cost and operating data for Three Divisions for the upcoming year:

Product	FL10	ED28	OU5
Direct Labour Hours	80,000	45,000	70,000
Machine Hours	20,000	130,000	21,000
Direct Material Costs	$420,000	$290,000	$320,000
Manufacturing Overhead Costs	$548,000	$520,000	$448,000

Predetermined overhead rates are computed using the following bases in the three companies:

Company	Overhead Rate Based On
FL10	Direct Labour Hours
ED28	Machine Hours
OU5	Direct Material Costs

Required:

1. Calculate the predetermined overhead rate to be used in each company during the upcoming year. (12 marks)
2. Assume that Division FL10 works on three jobs during the upcoming year. Direct labour-hours recorded by job are as follows: Job 1X, 16,000 hours; Job 2X, 24,000 hours; Job 3X, 38,000 hours. How much overhead cost will the company apply to work in process for the year? If actual overhead costs total $535,000 for the year, will overhead be under- or overapplied? By how much? (12 marks)