The Following Information Has Been Made Available to You A Compute the Predetermined Overhead Rate

Essay

The following information has been made available to you.Assume that overhead is applied on the basis of direct labor hours.
$\begin{array}{lr}\text { Estimated overhead } & \$ 1,638,000 \\\text { Estimated direct labor hours } & 390,000 \\\text { Actual direct labor hours } & 442,000 \\\text { Actual overhead } & \$ 1,862,000\end{array}$

a. Compute the predetermined overhead rate.
b. Compute the amount of applied overhead for the year.
c. Compute the amount of underapplied or overapplied overhead.