The Following Information Was Gathered for Wellington Company Assume That Direct- Labor Hours Is the Cost Driver

The following information was gathered for Wellington Company:
$\begin{array}{ll}\text { Budgeted direct-labor hours } & \mathbf{7 5 , 0 0 0} \\\text { Actual direct-labor hours } & \mathbf{7 7 , 5 0 0} \\\text { Budgeted factory overhead } & \$ 525,000 \\\text { Actual factory overhead } & \$ 538,000\end{array}$ $\begin{array}{ll}\text { Budgeted direct-labor hours } & 75,000 \\\text { Actual direct- labor hours } & 77,500 \\\text { Budgeted factory overhead } & \$ 525,000 \\\text { Actual factory overhead } & \$ 538,000\end{array}$ Assume that direct- labor hours is the cost driver. Compute:
a. Budgeted factory- overhead rate
b. Factory overhead applied
c. Amount of over/underapplied overhead