Managerial Accounting: E3-14 Cairo Products applies overhead using a combined rate

Managerial Accounting 
EXERCISE 3-14 Predetermined OH rate 
Cairo Products applies overhead using a combined rate for fixed and variable overhead. The rate is 125 percent of direct labor cost. During the first three months of the current year, actual cost were incurred as follows: 
Direct Labor Cost Actual Overhead 
January 360,000 440,000 
February 330,000 420,400 
March 340,000 421,000 

a. What amount of overhead was applied to production in each of the three months? 
b. What was the under-applied or over-applied overhead for each of the three months and for the first quarter?
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