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Predetermined Overhead Rate, Applied Overhead, Unit Cost Gomez, Inc., costs products using a normal costing system. The following data are available for last year: Budgeted: Overhead $304,500 Machine hours 80,000 Direct labor hours 10,500 Actual: Overhead $304,000 Machine hours 78,300 Direct labor hours 10,170 Prime cost $705,070 Number of units 100,000 Overhead is applied on the basis of direct labor hours. 3. Was overhead over- or underapplied, and by how much? Underapplied overhead =