(TCO 2) Paul Company applies manufacturing overhead based on
direct labor cost. Information concerning manufacturing overhead and
labor for August follows.
Overhead cost $174,000 $171,000
Direct labor hours 5,800 5,900
Direct labor cost $87,000 $89,975
How much is the predetermined overhead rate?
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(TCO 2) During 2015, Michael Company applied overhead using a job-
order costing system at a rate of $11 per direct labor hours. Estimated
direct labor hours for the year were 150,000, and estimated overhead
for the year was $1,650,000. Actual direct labor hours for 20x1 were
140,000, and actual overhead was $1,420,000.
What is the amount of under- or over-applied overhead for the year?