Tania & Co. provided has made the following information available to you. Assume that overhead is applied on the basis of direct labor hours. SHOW WORKING
Estimated overhead
$1,638,000
Estimated direct labor hours
390,000
Actual direct labor hours
442,000
Actual overhead
$1,862,000
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.