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Actual manufacturing overhead costs incurred during the

Question - Carlo Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $255,000 for the year and direct labor hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totaled $265,500. Actual direct labor hours were 105,000. What was the overapplied or underapplied overhead for the year?

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