Bubba's Crawfish Processing Corporation uses a traditional overhead allocation based on direct labor hours. For the existing year overhead is estimated at $2,250,000 and direct labor hours are budgeted at 415,000 hours. Actual overhead was $2,200,000 and real overhead hours worked were 422,000.
(a) Compute the predetermined overhead rate.
(b) Compute the overhead applied.
(c) Evaluate the amount of overhead that is over/underapplied.