The Following Information Was Gathered for Edwards Company Required:
A) Compute the Budgeted Factory Overhead Rate

Essay

The following information was gathered for Edwards Company:
$\begin{array}{ll}\text { Budgeted direct labor hours } & 75,000 \\\text { Actual direct labor hours } & 77,500 \\\text { Budgeted factory overhead costs } & \$ 562,500 \\\text { Actual factory overhead costs } & \$ 540,000\\\text { Cost driver of overhead costs }&\text { Direct labor hours }\end{array}$
Required:
A) Compute the budgeted factory overhead rate.
B) Compute the factory overhead applied.
C) Compute the amount of underapplied or overapplied factory overhead.